10 Fastest-Growing U.S. States

The RealEstateBloggers.com has released its list of the "Top 10 Fastest Growing States 2007–2008". California is ranked #2!

1. Texas
2.California
3. North Carolina
4. Georgia
5. Arizona
6. Florida
7.Washington
8. Colorado
9. Illinois
10. South Carolina

Should I Refinance?

Falling interest rates are fueling a mortgage refinance frenzy as homeowners rush to reduce their housing payments. The average rate for a 30-year, fixed mortgage dropped to 5.08% last week, according to the Mortgage Bankers Association, more than a full point lower than just a month ago.

Mortgage applications were up a whopping 48% last week, according to the MBA and more than 80% were from homeowners looking to lower housing costs.

Should you refinance? Here's are some pointers from CNNMoney.com:

Who should refi...
Anyone with high adjustable-rate loans. Folks in this group should try to get into a low fixed rate if they can. Not only will they lower their payments immediately but it would also eliminate the possibility of future increases.
Those who would lower their rate by a percentage point or more. Borrowers who already have a reasonable fixed rate shouldn't jump into a new loan every time rates inch down, according to Orawin Velz, an economist for the Mortgage Bankers Association.
"You should have at least a percentage point difference before you even think about it," Velz said. "If you have a 6.5% loan right now, it would be a great time to refi."
Waiting for a substantial rate decrease makes sense because getting a new mortgage incurs some expenses. There are the costs of a new appraisal and origination and application fees. Plus, a title search and title insurance are usually required.
All those costs, which can add up to $2,000 or $3,000 or more for a typical $200,000 loan, are often rolled back into the mortgage, increasing the principal upon which the interest rates are applied. If that goes up so much that it offsets the interest rate drop, it doesn't make sense to refi.
Those who are planning to stay in their homes for a while. The increased balances usually take a year or two to be wiped out by lower monthly payments, so anyone planning to sell the home during the next few years probably should not refinance, unless the difference in interest rates is very substantial.
The actual rate borrowers get depends, just as with purchase mortgages, on credit scores, income and assets and the value of the home.
"If you have a high credit score and your equity is good, it's like a vanilla cream puff," said Velz. "You're going to get a great rate."
Borrowers with significant equity in their homes. Many homeowners have had much of their home values erased in the post-bubble bust, eliminating much or all of their home equity - the difference between the value of the home and the amount owed on the mortgage.
If a refi borrower's home equity has fallen below 20% of the total appraised home value, the borrower will likely have to purchase private mortgage insurance. The insurance adds a point or two to the monthly mortgage costs, which turns a 5% loan into a 6% or 7% loan, erasing any advantage of refinancing.
"That's the biggest hurdle for refinancing right now," said Velz.
Borrowers who don't think rates will decline much further. Everyone considering refis has to decide whether to wait for interest rates to go even lower, which the Mortgage Bankers Association has been forecasting.
That's only a prediction, though, not a certainty. Rates could turn higher instead.
Borrowers must weigh the advantages of gambling on rates turning around or locking in savings at the present very low rates.

Click here for the entire article.

Slideshow: Crazy things people are doing to sell houses

Buy one home, get one free? Buy a house, get a free car or vacation? Raffle your way to your dream home?

This crazy market has got buyers doing...well, crazy things to get their homes sold! Check out this article from Forbes and the slideshow of some of these extreme home-sale strategies.

The Ten Most Livable Cities in the World!

The Economist Magazine ranked the world's top ten most "livable" cities...and the cities Down Under really came out on top. Melbourne, Perth, Adelaide and Sydney snaked 4 out of the 10 top spots! Canada didn't do so bad either. Sadly, the U.S. was poorly respresented, with no U.S. cities making the list. Better luck to San Diego next year!

The study looked at 5 main categories to determine ranking: stability, healthcare, culture and environment, education, and infastructure.

Here's the list:

Without further ado...Top 10 Most Livable Cities in the World in 2008 according to the Economist Magazine.

1. Vancouver
2. Melbourne
3. Vienna
4. Perth
5. Toronto
6. Helsinki
7. Adelaide
8. Calgary
9. Geneva
10. Sydney

Maybe it's time to throw some shrimp on the barbie!

Mortgage rates tumble to lowest since 1971

From the Associated Press:
Mortgage rates are falling as this week's dramatic action by the Federal Reserve provides a boost to the dismal housing market, but the nation's unemployment rolls are stuck at historically high levels amid a deepening recession.

Mortgage giant Freddie Mac on Thursday reported that rates had fallen to the lowest level on records dating back to 1971. Average rates on 30-year fixed-rate mortgages dropped to 5.19 percent, down from the year's previous low of 5.47 percent, set last week.

Click here for the full story.

Should buyers avoid shortsales?

Some friends of mine asked me this very question as they prepared to put in an offer on a short sale in a nice little neighborhood in Escondido. They, like many other buyers in today's market, had heard the horror stories about short sales. Buyers putting in offers and not hearing back for months, delayed closings, frustration galore!

Sure, short sales can be a little scary, but sometimes they work out just great. We helped a family purchase a short sale in Chula Vista just a few months ago. The home once appraised at close to a million dollars...and they got it for about $650,000. Needless to say, the short sale worked out for them!

So what's the deal with short sales? Some are good, and some are bad...but here are a few tips.
-Is the listing price for the short sale approved by the bank? If so, the process can move much more quickly.
-Always ask the listing agent how long it will take the bank to respond to your offer. Some take weeks and even months...others can respond in just days!
-Is the list price for the home fair? Do your homework. If the list price comps out, chances are the home is priced well and is a pretty good deal. The closer your offer is to the list price, the more quickly the process may go. Sometimes the bank will hold onto the "lowball" offers for months, waiting to see if anything better pops up. If you want to make a "lowball" offer, you probably want to keep looking at other properties.
-Will the home appraise out? If the agreed-upon purchase price is fair, then the home should appraise and you should have no trouble securing financing. But if the home appraises for less than the contract price, you may not be able to get a loan...OR...be responsible for kicking in the extra bucks! or sometimes you will just renegotiate the sales price with the bank. Bottom line...the home needs to be priced fairly!
-If the short sale price is not approved, is there more than one mortgage? If so, is the first and second with two different banks? Sometimes this slows things down. It goes more quickly if both mortgages are with the same bank.
-Sometimes you can get "outbid" by a higher offer, even when you are in escrow.
-Is your financing secured? After waiting for the bank to respond to your offer, once they do, the clock really starts ticking! They expect you to get all your inspections completed and financing in order FAST--often in shorter time frames than normal sales. Be sure you are ready to go!
-Is the listing agent experienced with short sales? Experienced listing agents can speed things along by constantly communicating with the bank.
-Always work with a buyer's agent that is experienced in short sales. This will save you many headaches! Contact us at christinevt@prusd.com for a free consultation.

30 Year Rates Drop to 4-Year Low

Freddie Mac reports a decline in the 30-year fixed mortgage rate to 5.47 percent during the week ended Dec. 11 from 5.53 percent last week and 6.11 percent a year ago.

Some lenders are locking in even lower rates as they build on momentum started when the Federal Reserve announced plans last month to purchase a substantial number of mortgage-backed securities. HSH Associates and Inside Mortgage Finance are reporting interest on 30-year fixed loans at 5.33 percent and 5.09 percent, respectively. Freddie Mac chief economist Frank Nothaft says mortgage rates also were driven downward by the recession and rising unemployment. Source: The Washington Post, Dina ElBoghdady (12/12/08)

New Signs Point to End of Housing Meltdown

Columnnist Dean Callbreath from the San Diego Union-Tribune argues that there is growing evidence that the San Diego housing market is beginning to slow and may actually bottom out sometime next year.

"Just last week, the Anderson Forecast at the University of California Los Angeles, one of the state's premier economic-analysis groups, predicted that California real estate prices will hit bottom by the middle of next year. Unfortunately, the UCLA Anderson Forecast has been unrealistically optimistic over the past couple years, so its rosy prediction may not match reality.'
On the other hand, the more accurate economic forecasting team at the Anderson Center at Chapman University in Orange (they produce charts these days showing how much better their predictions are than UCLA's) predicted a 6.7 percent decline in housing prices next year for California – great news compared with this year's 34.2 percent."

Click here for more.

San Diego Rents: Slow but Steady

SAN DIEGO UNION-TRIBUNE:

With slight drops in both vacancies and monthly rates, the local rental market is sluggish but stable, the San Diego County Apartment Association reported in its twice-yearly survey of landlords and apartment managers.

The average rent for all unit types countywide was $1,188, a slight decrease from the $1,201 reported in the spring survey, but a year-over-year increase of 1.7 percent.

The countywide vacancy rate on all unit types was 3.6 percent, a decrease of 1.2 percent from the spring survey and an increase of 0.2 percent year over year.

“Last spring we saw an increase in vacancies due to an increase in the supply of foreclosed homes being rented,” said Robert Pinnegar, the association's executive director. “Now it appears that those units are being absorbed and vacancy rates are returning to where they were a year ago.”

The report echoed findings released in October by the RealFacts research firm. That survey, which focused on large complexes of 100 or more units, found that rental and vacancy rates were essentially flat during the third quarter.

Click here for more.

Leonardo DiCaprio's Home Listed for $8.9 Million

According to the LA Times, Leonardo DiCaprio is selling one of his Malibu homes for 9 million dollars. The 2 bedroom, 2 bathroom 2,400 square foot home offers private access to a cove (apparantly the actor loves privacy) and the home features a guest house and a small pool.

He purchased the house for $6.35 million back in 2006, so looks like Leo is hoping star power will sell his home in a down market.

Win a Stay at the "Christmas Story" House on Ebay...Complete with a Leg Lamp!

Sign me up! This would be the Christmas present of a lifetime for a fan of the holiday movie The Christmas Story. On Ebay there was an auction to rent the home Christmas Eve and Christmas Day. And the owners will do everything they can to recreate the movie for you that day!

You even get your own Leg Lamp delivered in a wooden crate labeled FRAGILE! Other perks include:

- receive bars of Lifebuoy Soap

-Large FRA-GI-LE Major Award crate delivered to the front door of the house (yours to keep)Crow bar provided to open.

-Chinese Turkey Dinner at Pearl of the Orient

-Spend the night in A Christmas Story House sleeping in Ralphie and Randy’s bedroom!
Christmas presents include:

-2 BB guns (behind the desk)

-blue bowling ball

-and a bunny suit.

So yes, the auction has already been completed, but there is always next year! (The winning bid came in at over $5,250. Proceeds go to charity.)

WOW! Click here for the full list of perks and the complete story from the RealEstateBloggers.com.

Mortgage Rates Plummet

The $800 billion infusion of federal funds into credit markets has an immediate impact on mortgage rates.

NEW YORK (CNNMoney.com) -- Mortgage rates fell sharply after the administration announced that it will pump another $800 billion into credit markets to free up frozen consumer and mortgage lending.

That number dwarfed previous government actions aimed at bolstering the mortgage lending market.

"The feds agreed to spend a half a trillion dollars to buy up mortgage backed securities and another $100 billion to fund lending for Fannie and Freddie; we're not talking chump change anymore," said Keith Gumbinger of HSH Associates, a publisher of mortgage information.
Rates averaged 5.77% for the day on a 30-year, fixed rate loan, down from 6.06% Monday, according to Gumbinger. They fell as far as 0.75 percentage points during the day, according to Orawin Velz, Associate Vice President for Economic Forecasting at the Mortgage Bankers Association.

That could save a typical homebuyer more than $90 a month on a $200,000 mortgage.
"The government action was geared to bringing mortgage rates down," said Velz, "and it did."

The drop was the largest since early September, when the administration announced that it was taking control of mortgage giants Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500), and stemmed from similar market sentiment.

Click here for more.

Sales Up and Prices Down in San Diego

As the nation's economy heads toward a possibly deep recession, San Diego County's housing market is not all doom and gloom, according to an article from the San Diego Union Tribune.

While prices continue dropping as low-cost foreclosures dominate the market, bargain hunters snapped up more properties last month than at any time in nearly a year. Lower prices have also resulted in the best affordability rates in nine years.

MDA DataQuick reported yesterday that there were 3,598 sales last month, the best October in three years, as prices dipped to a median $323,500, a number not seen in six years. Foreclosures made up nearly half of all resales, their highest proportion so far.

Click here for more.

Encinitas named one of the ten best places to sell a home

According to Forbes, Encinitas is one of the 10 best suburbs to try to sell a home right now. With the year-over-year price change at only -5%, and a median home price of $1.23 million (according to Forbes,) the beach town is one of the best places to try to sell...if you must. The percentage of sellers decreasing their home prices is 40%, which is actually low compared to other neighborhoods.

Click here for a slideshow to see the top ten places to try to sell a home right now, according to Forbes.

Study says number of first-time home buyers increasing

Low home prices and excess supply helped drive a rise in first-time U.S. homebuyers and reduce excess inventory, according to a study released Saturday by The National Association of Realtors.

According to the survey, which was released at the 2008 Realtors Conference & Expo, the number of first-time buyers rose to 41 percent from 39 percent of all transactions in 2007.

"First-time buyers are much more flexible in entering the market because they aren't concerned about selling an existing home," National Association of Realtors Chief Economist Lawrence Yun said in a statement.

Other interesting tidbits:

• According to the study, the median age of first-time buyers was 30, down from 31 in 2007.
  The median income for a first-time buyer was $60,600 and typical first-time buyers bought homes costing $165,000.
• Of first-time buyers who made a down payment, 69 percent used savings and 26 percent used money from a friend or relative. Another 7 percent received a loan from a relative or friend, while 16 percent used funds from their investments. A fixed-rate mortgage was chosen by 92 percent of those surveyed.

Click here for the full article from MSNBC.

What $1 million gets you in homes around the U.S.

CNN Money release their quarterly look at what one million bucks will get you in homes around the country.

A five bedroom house in North Carolina, a 3 bedroom townhouse in Philly, or an impressive home in Atlanta?

Click here to see what 1 million will get you around the U.S.

Are you Over-Paying Your Property Taxes?

As many as one-quarter of San Diego County homeowners may be paying too much property tax because their homes are worth less now than when they bought them, according to study by a San Diego software company.

EasyTaxFix.com, a start-up that offers a Web-based property tax appeal service, conducted the study using county data provided by La Jolla-based MDA DataQuick. It estimates that one in four households is potentially over-assessed.

Though they haven't seen the study, officials at the county assessor's office say EasyTaxFix's calculations are probably about right.

The county did its own analysis recently, said Jeff Olson, chief of assessment services. It found that 28 percent of all county properties changed hands in the past four years – when values jumped sharply during the housing boom.

“If you consider that to be January 2004 to present, you're looking at 28 percent of the properties in the county that could be candidates for a reduction in value,” Olson said.

Click here for the rest of the article from the San Diego Union-Tribune.

It's official: No more booze at city beaches

Disaster! The beach booze ban has passed. Shiraz at sunset? Red wine and some rays? Schmirnoff in the sand? It's over, all over! :(

A drive to permanently from San Diego city beaches and waterfront parks was passed, bringing an end to the long battle to force booze from local beaches. Proposition D will extend a one-year ban that has been in place since January. If it had failed, the temporary ban would have expired.
Jim Lantry, who worked to pass the measure, said he believes having a trial ban in place convinced people that permanent restrictions would benefit the city.
“Once people had the chance to see what alcohol-free beaches meant, they changed their minds,” Lantry said. “They said, 'I'd like to have a beer at the beach, but frankly it's not worth it.' ”

Click here for more.

Click here for more.

When will the bloodshed end?

14 more die in day of raging violence in Tijuana.

TIJUANA – Police across Tijuana were on high alert as the region's continuing violence claimed 14 lives yesterday, including two state police agents, two victims who were decapitated and four apparently shot while walking.

The first Baja California state agent, Marco Cárdenas Carrasco, was killed about 8:30 a.m. yesterday while driving near the intersection of two major boulevards in eastern Tijuana.
Shortly after 3 p.m., Roberto Elizalde, a veteran agent who oversaw an office in the eastern Mariano Matamoros section, was ambushed on a major thoroughfare as he left his shift.

Yesterday's decapitated victims, both men, were discovered about 6 a.m. near the Otay Mesa border crossing, their bodies inside large plastic barrels, and their heads placed on the lids. They were not identified, but a handwritten message was left: “This is what will happen to those that hang out with the filthy Arellano Félix.” It was signed la maña, a term for mafia.

About 6:30 a.m., four unidentified male victims were found in Mariano Matamoros, on the side of a dirt road near a community clinic attended by dental students. They were between 20 and 25 years old.

Shortly after 5 p.m., two dead men were found inside a vehicle in a neighborhood west of downtown.

At 7 p.m., in the eastern area of Los Alamos, assailants shot four men, apparently while they were walking, the Attorney General's Office reported.

Law enforcement officials say most killings in recent weeks have been the result of battles among criminal groups seeking control of drug trafficking in the region.

From San Diego Union Tribune.

Existing home sales see largest gain in years

From MSNBC.com:
Sales of existing homes rose by the largest amount in more than five years in September. But analysts cautioned against reading too much into the gain, noting that it reflected conditions before the latest upheaval in financial markets increased the likelihood of a recession in the overall economy.

The National Association of Realtors reported that sales of existing homes rose by 5.5 percent from August to September to a seasonally adjusted annual rate of 5.18 million units — far better than the flat results analysts had expected. On an unadjusted basis, sales were up 7.8 percent from September last year.

Click here for more.

Rates on 30 Year Mortgages Drop

Rates on 30-year fixed-rate mortgages dropped sharply this week, falling to the lowest level in five weeks, Freddie Mac reported in its nationwide survey. The rates fell to 6.04 percent, down from 6.46 percent last week.

Rates on 15-year fixed-rate mortgages fell to 5.72 percent from 6.14 percent. Rates on five-year adjustable-rate mortgages fell to 6.06 percent from 6.14 percent last week. However, rates on one-year adjustable-rate mortgages rose to 5.23 percent from 5.16 percent last week.
Rates don't include add-on fees known as points. The nationwide fee for 30-year, 15-year and five-year mortgages was 0.6 point. For one-year mortgages, the fee was 0.5 point.

Local Experts: Housing Downturn Approaching Bottom

SAN DIEGO UNION-TRIBUNE:

An unusual September jump in home sales, together with the biggest monthly drop yet in prices, could be early signs that San Diego County housing is approaching the bottom of a three-year-old downturn, industry experts and observers said yesterday.

MDA DataQuick reported that the median price for all homes dropped $22,000 from August to stand at $328,000 last month, the lowest since June 2002. The figure represented a 34.6 percent drop from the all-time peak of $517,500 set in November 2005.
Sales jumped 56.4 percent to 3,366 transactions from year ago levels, a reflection of the very low sales completed in September 2007 in reaction to the credit crunch and subprime mortgage crisis.

Though the timing of a recovery will hinge on the course of the overall economy, some observers said the increase in volume suggests that more investors are deciding that prices have fallen to bargain levels and are getting into the market.

Click here for more.

10 Most Expensive Zipcodes in the U.S.

Rancho Santa Fe ranks #9 in a list of the most expensive zip codes in the U.S, as compiled by Forbes.

Here's the list:


33109 – Fisher Island, Fla., Miami-Dade County Median sales price: $3.85 million
07620 – Alpine, N.J., Bergen County Median sales price: $3.59 million
11765 – Mill Neck, N.Y., Nassau County Median sales price: $3 million
92657 – Newport Coast, Calif. Orange County Median sales price: $2.8 million
11976 – Water Mill, N.Y. Suffolk County Median sales price: $2.72 million
94027 – Atherton, Calif. San Mateo County Median home price: $2.7 million
93108 – Santa Barbara, Calif. , Santa Barbara County Median home price: $2.7 million
11975 – Wainscott, N.Y. Suffolk County Median home price: $2.56 million
92067 – Rancho Santa Fe, Calif. San Diego County Median home price: $2.47 million
90210 – Beverly Hills, Calif. , Los Angeles County Median home price: $2.41 million

Alan Greenspan: Housing Set to Recover Early 2009

From Reuters: Former Federal Reserve chairman Alan Greenspan said the U.S. housing market will begin to recover in the first half of 2009, according to an article he wrote for Emerging Markets magazine published on Friday.

Greenspan wrote that the recent slowing in the rate of decline in U.S. home prices is the first positive note in the year-long trauma and that eventually, frozen credit markets will thaw "as frightened investors take tentative steps toward reengagement with risk."

"More conclusive signs of pending home price stability are likely to become visible in the first half of 2009," he wrote.

Th former Fed chief says a healing housing market will aid the credit crisis.

Click here for a link to the article on MSNBC.com.

Pending Home Sales Up for August...up 18.4% in the West

Good news as the combination of lower prices, low interest rates, and pent up demand comes to a head...

Pending home sales in a report issued by the National Association of Realtors are up 7.4 percent in August compared to July, 2008. The numbers are up 8.8 percent over August, 2007. For the West, the gain is more significant...up 18.4%.

While it is not time to crack open the champagne bottles, it is a sign that consumer demand and pricing are finding an equilibrium.

Click here for more.

Mortgage Rates Drop Below 6%

WASHINGTON - Rates on 30-year mortgages fell below 6 percent this week, recording the first decline in three weeks.

Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed rate mortgages averaged 5.94 percent this week, down from 6.10 percent last week. It marked the first decline since rates fell on Sept. 18 to 5.78 percent, a seven-month low.

Click here for more.

Rents Up in San Diego...Largest Increase in Years

Apartment rents in the county increased 2.49 percent in the last six months while vacancies decreased 1.38 percentage points as homeowners lost their properties to foreclosures and renters found themselves unable to buy, according to the Union-Tribune.

MarketPointe Realty Advisors said in its semiannual survey of 804 large apartment complexes with a total of 115,576 units that the average rent this month stood at $1,344, up from $1,312 in the March survey and $1,291 last September.

MarketPointe President Russ Valone said the rental increase was the largest in recent years and likely to increase further.

Click here for more.

Foreclosed Homes: The Right Time to Buy?

Experts say that by the end of 2008, banks may own as many as 1.2 million homes—equal to about one third of all the homes for sale in America. And as those inventories grow, so does the pressure to sell them. The result? Prices drop.

Click here for more on whether or not it's the right time to buy a foreclosed home.

What $1 Million Can Buy You Around the World

A quaint three-bedroom home in Syndey, Australia. A grandoise estate in Costa Rica. A 1 bedroom home in Tokyo. These are examples of what $1 million could buy you around the world.

Click here to see pictures of homes that $1 million could get you.

Rates Fall to 7 Month Low

AP - Rates on 30-year mortgages dropped sharply again this week, falling to the lowest level in seven months, as rates continue to decline following the government's dramatic takeover of mortgage giants Fannie Mae and Freddie Mac.

Freddie Mac reported Thursday that its nationwide survey found 30-year, fixed-rate mortgages declined to 5.78 percent this week, down from 5.93 percent last week.

It was the fifth consecutive weekly decline and pushed the 30-year mortgage to the lowest level since it stood at 5.72 percent the week of Feb. 14. The decreases have accelerated over the past two weeks since the government announced on Sept. 7 that it was taking control of Fannie Mae and Freddie Mac because of huge losses the companies were experiencing due to soaring defaults on mortgage loans as home prices slump.

Mortgage Rates Drop, but Credit is Still King

From CNN Money:

The takeover of Fannie and Freddie may make mortgage borrowing cheaper - but it won't make getting a loan any easier. Mortgage rates have plummeted, but that hasn't made getting a home loan any easier for most borrowers.

In the wake of the government's takeover of Fannie Mae and Freddie Mac last weekend, the 30-year fixed rate has dropped from 6.26% last Friday to 5.79%. But only buyers with a credit score of 740 of above - and a 20% down payment - can qualify for such a low rate. During the boom, borrowers only needed scores of 640 to land the lowest rates available. Even a 580 score would get them very close to the best rate.

During the credit crisis, Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500) have become virtually the only source of funding for banks and other home lenders looking to make home loans. Their ability to lend is crucial to the housing market. To that end, the Treasury will buy mortgage-backed securities from the two firms, and lend them money if necessary, all in an effort to make credit more available to home buyers.

Click here for more.

CNN Money: Home Prices will Level Off by Next Summer

NEW YORK (CNNMoney.com) -- Alan Greenspan famously declared the worst was over back in November of 2006. And the National Association of Realtors' erstwhile chief economist David Lereah called the bottom a few times, starting in May 2006.

Plenty of other economists and real estate analysts have attempted to do the same - and of course they've all been wrong.

But a consensus seemed to emerge among experts at a housing forum held by Standard & Poor's and the Chicago Mercantile Exchange on Wednesday in New York. Readers will be forgiven for taking this pronouncement with a large grain of salt.

Several panelists, including Economy.com's chief economist Mark Zandi, Goldman Sachs (GS, Fortune 500) economist Charlie Himmelberg, S&P managing director David Blitzer and S&P senior economist Beth Ann Bovino all agreed that home prices would stabilize sometime during the summer of 2009.

"The bottom of the housing market is coming into view," said Zandi, whose recent book "Financial Shock," examines how the subprime mortgage crisis occurred. "House prices, based on the S&P Case-Shiller index, are down 20% peak-to-trough and I expect them to fall another 5% to 10%."

"The key is housing affordability," Zandi said. "The [price] decline is beginning to restore affordability, which is now near its long-term average. In some places, Boston, Chicago, Denver, Orange County, affordability has been restored and those markets have stabilized."

Click here for more.

La Jolla Tops Forbes List, "America's Most Expensive Waterfront Cities"

Beautiful La Jolla topped the Forbes list of "America's Most Expensive Waterfront Cities," where the median price of a home is reportedly $1.85 million. With its amazing ocean views, mesmerizing sunsets, fantastic shopping, fine dining and picturesque beaches, it's not hard to see why.

Click here to see what other beach front cities made the list.

Study Says San Diego "Undervalued" Market

San Diego, which three years ago had one of the most overvalued housing markets in the country, is now the most undervalued in California, the economic and financial analysis company Global Insight reported.

The market has improved because housing prices have fallen about 32 percent from their peak, while incomes have continued to increase.

“A metro area like San Diego has, in a sense, fallen too much,” said James Diffley, who directs Global Insight's regional services group.

Click here for the rest of the article.

"The Process of Recovery Has Begun"

Good news and bad news: Sales of existing homes rose in July, surpassing expectations, as buyers snapped up deeply discounted properties in parts of the nation hit hardest by the housing bust.

However, the number of unsold properties hit an all-time high, the latest indication that the worst housing slump in decades is far from over. Prices nationwide are not expected to hit bottom until early next year.

The National Association of Realtors reported yesterday that sales rose 3.1 percent to a seasonally adjusted annual rate of 5 million units, up from June's downwardly revised rate of 4.85 million units. Sales had been expected to rise by 1.6 percent, according to economists surveyed by Thomson/IFR.

“The process of a recovery has begun,” said Joel Naroff, president of Naroff Economic Advisors. “It's not going to be short and swift, but it's begun nonetheless.”

Click here for more.

What the Media Isn't Telling You About the Real Estate Market

I enjoyed the latest blog post from TheRealEstateBloggers.com which talks about things the media ISN'T telling you about the real estate market.

Here are some facts from a government study done by the Office of Federal Housing Enterprise Oversight:
1. Coincidentally, the 3 states that have had the sharpest decline in home sales & prices are also 3 of the states that experienced the biggest booms (sharpest appreciation) during the early 2000s - California, Florida and Nevada.
2. Over half of all metropolitan statistical areas (MSAs) are showing price appreciation each quarter.
3. Of the 20 ranked cities with the greatest price declines over the latest four quarters, all but one (Las Vegas-Paradise, NV) are in California or Florida.
4. Only 15 out of 50 states have shown any actual price decline in the past year. The rest still show modest appreciation in home values.
5. Only 3 states have shown significant price declines from the first quarter of 2007 to the first quarter of 2008.
6. There are still many areas showing 5% or more appreciation over the past year, including but not limited to Bayou Cane LA with 11.22%, Wenatchee WA with 8% and Idaho Falls ID with 5.06%.
7. The type of annual appreciation we’ve seen since 2005 (ranging from 1.8% to 3.7%) is similar to the type of appreciation the U.S. experienced in the mid to late 90s, right before the real estate boom.

Wow, who knew? :)

Villa on French Riveria Sells for $750 Million

Think San Diego real estate is expensive? Try the French Riveria. A 106-year-old villa on the French Riviera has reportedly sold for $750 million, 10 times the costliest home on the market in San Diego today, according to the San Diego Union-Tribune.

The Villa Leopolda, a 20-acre estate with 1,200 olive, cypress and fruit trees, once owned by Belgian King Leopold II, was purchased by a Russian billionaire, according to the Nice-Matin newspaper.

Click here for more.

Lighting Up the Coronado Bridge

From the San Diego Union-Tribune...

Firms from France, the United Kingdom and California are the finalists to create an artistic lighting design to illuminate the San Diego-Coronado Bridge.

The three teams are the Bideau Company of Ballan-Mire, France; the Peter Fink team of London; and the team of Ned Kahn/Patrick McInerney Associates/ Jason Edling of California.

The design teams will be paid a stipend of $15,000 to cover design fees, research, accommodations and travel during public presentations at the end of the year.

Click here for more.

Associated Press: Pending Home Sales Rise 5.3 Percent

WASHINGTON – A measurement of pending home sales rose in June in a rare piece of positive news for the beleaguered market.

The National Association of Realtors' seasonally adjusted index of pending sales for existing homes rose 5.3 percent to 89 from May's reading, which was revised downward to 84.5 from an earlier reading of 84.7.

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Thinking about Buying? Know this Date: June 30, 2009.

According to housing expert Kenneth Harney, if you're thinking about buying, know this date: June 30, 2009. This date is the current deadline to qualify for the home purchase tax credit created by the massive housing bill approved by Congress.

What's the story? If you have not owned a house during the past three years – or are considering buying your first home – and can go to closing before the end of next June, you may be eligible for up to a $7,500 credit against your federal taxes for 2008 or 2009 ($3,750 if you file taxes as a single person).

Click here for more.

Property Tax Reassessments save San Diego Homeowners $91 Million

Property tax reassessments will save San Diego homeowners roughly $91 million annually--the most reductions since the housing decline, giving strapped property owners a welcome break.

This article from the San Diego Union-Tribune has more information.

But it is important to note...
"The relief is only temporary. When the housing market starts to rise again, the assessor can raise the assessed value back to its original level and tack on up to an additional 2 percent for each year, as if the reduction had never taken place."

Here's a comment from a reader:

"People need to crunch their numbers...if they are planning on using their house for what it was intended...a long term investment, then you have the potential for ALOT more taxation in the future if you sign up for this "offer.""

What do you think?

Housing Decline: The Beginning of the End?

California may be the first state to hit the bottom of the housing market, according to this article from Bloomberg.

"California is having a wrenching decline in wealth, but this is a cathartic event that will lay the foundation for a recovery,'' said Mark Zandi, chief economist at Moody's Economy.com in West Chester, Pennsylvania, in an interview. ``This signals the beginning of the end.''

Experts claim that the amount of foreclosures on the market--at about 40% to 60% of the price from the height of the market--are boosting sales. In addition, Bloomberg reports that home sales in California rose for three consecutive months starting in April. That’s the first time that’s happened in 30 months.

While experts say it will take some time to get thru the huge inventory of homes on the market--and of course option ARMS are set to start adjusting across the state next Spring--there might be some truth to the report: the end may be near.

UTC Plans $900 Million Dollar Expansion

The dated UTC shopping center in La Jolla is getting a facelift. Among other things, the plan includes:

• 750,000 square feet of new retail space, including three new anchor stores and 150 shops and specialty boutiques. The center now has 1 million square feet of retail.
• 250 to 300 condominiums, with 10 percent of them reserved as affordable. There will be two condo towers with one rising as high as 23 stories and the other as much as 15 stories.
• A movie theater.
• As much as 5,000 square feet of office space.
• At least 3,000 new parking spaces, many of them in three new parking garages.

Click here for more.

How Will the New Housing Law Help You?

So what does this new housing law really mean? Who stands to benefit, and how? What are the chances that you might actually get something out of it?

Check out this helpful Q&A from the Associated Press.

Beach Ban Goes Before Voters on Nov. 4th

SAN DIEGO: San Diegans soon will have their second chance this decade to determine whether alcohol should be banned at city beaches. How will you vote?

Bush Signs Housing Relief Bill

WASHINGTON – President Bush on Wednesday signed a massive housing bill intended to provide mortgage relief for 400,000 struggling homeowners and stabilize financial markets.

Provisions of the housing bill that President Bush signed into law Wednesday:

• Gives the Federal Housing Administration $300 billion in new lending authority and relaxes standards to provide affordable, fixed-rate mortgages to an estimated 400,000 debt-ridden homeowners. Any losses will be covered by an affordable housing fund financed by Fannie Mae and Freddie Mac, the government-sponsored companies that finance mortgages.
• Allows the Treasury Department temporary authority to lend money to Fannie and Freddie or buy their stock to avert a collapse of one or both of the mortgage giants. The authority expires on Dec. 31, 2009.
  
• Creates a new regulator and tighten controls on Fannie and Freddie, including power for the regulator to approve pay packages for company executives. Creates a new affordable housing fund drawn from their profits. Permanently raises the limit on the loans they may buy to $625,000 in the highest-cost areas. Allows them to buy loans 15 percent higher than the median home price in certain cities.
  
• Provides $3.9 billion in grants to the hardest-hit communities for buying and fixing up foreclosed property.
• Modernizes the FHA and allows it to back loans for riskier borrowers. Permanently increases the size of loans the agency may insure to $625,000 in the highest-cost areas. The agency can insure loans 15 percent higher than the median home price in certain cities.
• Prohibits the FHA from insuring mortgages in which the borrower's down payment is paid by the seller, beginning on Oct. 1, 2008. Places a one-year moratorium prohibiting the agency from charging premiums based on the riskiness of the homeowner, until Oct. 1, 2009.
  
• Provides $15 billion in housing tax breaks, including for low-income housing. Gives a credit of up to $7,500 for first-time home buyers who purchase residences between April 9, 2008, and July 1, 2009. Allows people who don't itemize their taxes to claim a $500-$1,000 deduction on their 2008 property taxes.
  
• Gives states an additional $11 billion in tax-free municipal bond authority for low-interest loans to first-time home buyers, construction of low-income rental housing and refinancing subprime mortgages.
  
• Offers protection from investor lawsuits for mortgage holders that modify loans to borrowers who are in default or about to default.
  Provides $180 million for pre-foreclosure counseling and legal services for distressed borrowers

Click here for full story.

Who Pays the Most Rent?

The San Diego Union-Tribune released this graphic showing who pays the most rent in San Diego. Looks like La Jolla tops things out, followed by the beach communities of Coronado and Del Mar and Encinitas, and downtown.

The Russians are Coming...to Buy Your House!

In this recent article from Newsweek, the author contends that a wave of wealthy Russians are house-hunting in the U.S. Here in Coronado, we can confirm this as an increasing number of Russians are entering our Prudential office, asking for information on homes and condos, usually above $1 million.

Click here for the article.

Senate Approves $300 Billion Housing Rescue Bill

WASHINGTON - The Congress approved a massive housing market rescue bill Saturday, offering emergency financing to Fannie Mae and Freddie Mac, creating a new regulator for the mortgage titans and setting up a $300 billion fund to help troubled homeowners.

The bill was approved by the Senate in a 72-13 vote. It was passed by the House of Representatives Wednesday. President Bush was expected to sign it promptly.

Sen. Carl Levin, D-Mich., said the legislation will "help keep struggling families in their homes" and help keep "declining property values stable."

Click here for more.

Gas Prices Entice Renters to Move Downtown, Rents Up

Sick of filling up the tank for sixty bucks? Considering a place near work downtown and tossing the car keys? Prepare to pay higher rents as more like-minded apartment dwellers flock to urban digs. Nationwide, rents near job centers and mass transit are rising faster than other areas, according to New York-based real estate research firm Reis Inc.

And already in downtown San Diego, for example, rents have jumped 15 percent in the last year to between $2,400 and $2,600 a month for a two-bedroom apartment, said Greg Neuman, owner of Neuman & Neuman Prudential Realty.

Click here for more info.

Looking for a Deal?

Check out properties in these distressed neighborhoods around San Diego. Take advantage of a foreclosure and some price drops! In Golden Hill, prices have gone down 39% since last year. In City Heights, prices are down 32%. Everything is on sale!

Click here for the list of zip codes with the best deals.

San Diego Apartment Rents Edge Up

The cost of renting an apartment in San Diego County rose slightly in the second quarter, according to a report released yesterday by research firm RealFacts.

In a survey of rental complexes of 100 units or more, the study found the average rent in the county to be $1,393, a 1.1 percent increase from the previous quarter and up 3.5 percent from the second quarter of last year.

Click here to read more.

Thinking about Making a Low-Ball Offer on a Foreclosure Property?

Thinking about making a low-ball offer on a foreclosure? Think again. Most foreclosures currently on the market are priced so low, that they are getting multiple offers and selling at ABOVE their asking price, according to the the San Diego Business Journal.

Bank-owned homes recycling back into the market after foreclosure are being priced well below market value in order to solicit multiple bids, which in some cases exceed their original asking price, agents and analysts say.

Brian Yui, chief executive officer of HouseRebate.com, which tracks listings of bank-owned properties — known as real estate owned, or REO, properties — says banks are underpricing properties and selling them much quicker than traditional home sales.

“The banks appear to be getting fair market value for their homes,” he said. “For buyers thinking to lowball REO listings, they must think again as there are other buyers out there willing to pay (fair market value).”

Foreclosures are skyrocketing as borrowers default on mortgages in record numbers — in many cases walking away from homes because their mortgages cost more than the homes are now worth.

Of all the home sales in San Diego County in May, 36 percent were bank-owned properties — homes that had been foreclosed by lenders in the prior 12 months and then resold, according to DataQuick Information Systems of San Diego.

Many of them sold above asking price, says Yui, adding that he noticed the trend while looking up comparable prices in Escondido of a bank-owned house he was considering buying for himself.
In that one search, he found 10 properties — seven of them REOs — that closed above their listing price.

Click here to read the entire article.

Mortgage rates fall, reversing 5-week streak

Asssociated Press--Rates on 30-year mortgages, which had been rising for five straight weeks, posted a decline this week as signals from the Federal Reserve eased worries about imminent rate increases.

Rates on 15-year fixed-rate mortgages dropped to 5.92 percent from 6.04 percent. The five-year adjustable-rate mortgage fell to 5.78 percent from 5.99 percent. The rate on a one-year adjustable-rate mortgage declined to 5.17 percent from 5.27 percent.

Rates don't include add-on fees known as points. The fee for 30-year, 15-year and one-year mortgages all averaged 0.6 point this week. The fee on five-year mortgages averaged 0.7 point.

Starbucks to Close 600 US Stores

SEATTLE – For a decade it appeared there was no such thing as too many Starbucks stores for U.S. coffee drinkers, whose willingness to buy its $4 lattes and dark drip brews rationalized a second green-and-white mermaid awning just down the street – and sometimes even a third.

But in a sign that those days are over, Starbucks announced yesterday it will close 600 company-operated stores in the next year, as the faltering U.S. economy hastened the pain caused by the company's own rapid expansion.

Starbucks did not say which stores will be closed, only that they are spread throughout the country. It did say that 70 percent of those slated for closure had opened after the start of 2006.

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Existing-Home Sales Edged Up in May

Some good news and bad news in national real estate news this week:

WASHINGTON - Sales of existing homes rose slightly in May, only the second increase in the past 10 months. Prices, however, kept plunging and analysts said the large number of unsold homes indicated the prolonged slump in housing was far from over.

The National Association of Realtors reported Thursday that sales of existing single-family homes and condominiums edged up by 2 percent to a seasonally adjusted annual rate of 4.99 million units in May. Even with the small gain, it was still 15.9 percent below the depressed levels of a year ago.

The median price of an existing home sold in May dropped to $208,600, 6.3 percent lower than a year ago. That is the point where half sell for more and half sell for less. It was the fifth biggest year-over-year price decline in records that go back to 1999.

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Median Home Prices Rise in Encinitas, La Jolla, and OB

This news from the San Diego Union-Tribune:

As median home prices continue to decline, it seems no community is immune to the slumping real estate market. And yet, during the last quarter a few coastal areas were able to eke out a healthy rate of price appreciation reminiscent of the housing boom.

Take Ocean Beach, which experienced a 14.4 percent year-over-year increase in the median price of a resale home during the first quarter of this year. By comparison, resale home prices for the entire county fell 21 percent during the same period, according to statistics released yesterday by DataQuick Information Systems.

In fact, prices declined for all but three of the county's 59 ZIP codes that recorded at least 20 sales between Jan. 1 and March 31 of this year and last.

Bucking the trend were Encinitas, La Jolla and Ocean Beach, which experienced price gains, while in Mission Beach and Pacific Beach, the median price remained relatively unchanged from last year to this.

Click here for the whole article.

Forbes: San Diego Home Prices Set to Go Up

This bit from the latest issue of Forbes Magazine:

"San Diego's present conditions suggest that over the next half-year, prices may start to rise. That's because "there's usually a three- to six-month lag between when transactions go up and prices go up," says Jonathan Miller, president of Miller Samuel, a Manhattan real estate appraisal firm.

Another good sign for the coming year? Increased credit availability."

Click here for a link to the entire article.

Can it be true? Well, in the last week, we've made represented buyers making offers on 3 well-priced properties in Point Loma, Ocean Beach, and Rancho Penasquitos. These properties were *not* short-sales and were priced at current market conditions.

One property had NINE offers on it in 3 days, several over the asking price.
The second property had 3 offers within the value range in 4 days.
The third property? Had 4 offers in as many days, one over the asking price.

We weren't seeing this a couple of months ago! Our word to buyers: if you see a well-priced property that you're interested in, don't hestitate! The good ones are going fast.

Fed's Efforts Pay Off as Mortgage Rates Hit a 5-week Low

Rates on 30-year mortgages dropped below 6 percent this week for the first time in more than a month, reflecting aggressive efforts by the Federal Reserve to cut interest rates to protect the economy from a serious recession.

Freddie Mac, the mortgage company, reported yesterday that 30-year fixed-rate mortgages averaged 5.87 percent this week. That was down from 6.13 percent last week, and marked the first time that 30-year rates have fallen below the 6 percent level since the week of Feb. 14.

Click here for more.

Three Ways to Play the Downturn in Housing

I like this recent article from the San Diego Union-Tribune that outlines three smart and safe ways to play the downturn in the housing market. Take a moment to check it out.

San Diego Rents Up 4% From Last Year

Good news for investment property owners...rents are up, and vacancies are down.

Despite a weakening economy, rental rates in San Diego County are up 4 percent from a year ago, fueled in part by strong demand as fewer people buy homes and mushrooming foreclosures turn homeowners into renters.

A survey of nearly 800 apartment complexes of 25 units or more revealed that the average monthly rent this month was $1,311, up $50 compared with a year ago, according to MarketPointe Realty Advisors, which released its semiannual report. In September, the average rent was $1,291.

Meanwhile, the vacancy rate stood at 3.6 percent, which is about a percentage point less than it was a year ago.

“The rental rate increase is consistent with what we've seen over the last several years,” said Russ Valone, president of MarketPointe. “With people hesitating to go into the for-sale marketplace, they're staying in rentals, so that's keeping the demand up. There's still a limited number of vacant units, so the rental market is not oversupplied; in fact, it remains a little undersupplied.”

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New Conforming Loan Limits

And the magic number is....$697,500!

In a move that could help thousands of distressed San Diego homeowners, the Federal Housing Administration announced that it will raise the limits on mortgages it guarantees from $417,000 to $697,500 within the county.

Mortgage-purchasing giants Fannie Mae and Freddie Mac are likely to soon adopt the same new limits as the FHA. If so, that will greatly ease the national credit crunch for borrowers who need to refinance adjustable-rate mortgages or risk losing their homes to foreclosure.

Government-sponsored Fannie Mae's and Freddie Mac's limit for “conforming” loans is $417,000. Loans below that limit have carried lower interest rates and better terms than larger “jumbo” loans.

Something to rememember: it may not last forever! While the stimulus act will raise lending limits for Fannie Mae, Freddie Mac and the FHA, all of the new limits are scheduled to expire at the end of the year.

Click here to read the entire article.

Country's Richest Zip Codes

The wealthiest zip codes in the United States, based on 2006 median price for real estate:

07620: Alpine, N.J., with a median sale price of $3.4 million
33109: Miami Beach, Fla., with a $3.4 million median price
92067: San Diego County's own Rancho Santa Fe, with a median price of $2.6 million
SOURCE: FORBES.COM

No More Free Parking in Pacific Beach?

First the ban on beach drinking, now this?

It's not just La Jolla that's considering charging for street parking. A nascent debate is brewing in Pacific Beach over whether to install meters to increase turnover in parking spaces near the surf and raise money for public improvement projects.

A citizens advisory committee is studying a consultant's report that recommends metered parking and parking permits for residents and employees of Pacific Beach businesses.
The $26,000 report was paid for by a business improvement council. Ever since it was released last month, it's been a hot topic of discussion, generating strong reactions from residents – most of them negative.

Click here for the article in the San Diego Union-Tribune.

Why You Need a Buyer's Agent: 10 Desperate Lies Home Sellers Tell

Sellers can be ... let’s say, “flexible,” with the truth. A creative omission here, a slight exaggeration there, and before they know it, they’ve told more porkers than Pinocchio. The more desperate they are to sell, the more likely they are to gloss over the cracks.

This is why you need an experienced buyer's agent who can guide you through the process of home inspections, reports, and disclosures, so you know as much as possible about the home you are purchasing.

Click here for the list of 10 Desperate Lies that Home Sellers Tell.

Coronado's First Street Rests Easier without Big Trucks

It's quieter these days on First Street in Coronado, where for years residents put up with hundreds of big rigs rumbling toward North Island Naval Air Station starting at 4:30 a.m. most weekdays. Relief arrived with the opening last summer of a new main entrance to the base on Third Street, where many vehicles and all commercial trucks heading there have since been directed.

And in December, the city “de-designated” the two-laned First Street a truck route, officially ending what had become for many residents a nightmare.

Click here to read the rest of the article from the San Diego Union-Tribune.

Slide Show: America's Most Expensive Homes

Holy cow! Check out Newsweek's slide show of America's most expensive homes.

Luxury Home Market Stays Strong

There sure isn't much positive news in the housing sector. So why are ultra high-end home prices still rising, with some prices reaching up to an astronomical $175 million? Newsweek addressed this oxymoron in its latest issue.

It's a simple matter of supply and demand, say brokers from hot markets like Manhattan, the Hamptons, Palm Beach and both ends of California. While there's a national glut of McMansions in the $500,000 and up range, there's a shortage of trophy properties on the market and an increasing number of wealthy foreign buyers from Asia and Europe looking to capitalize on the weak U.S. dollar.

Those struggling to pay their monthly mortgage or buy a first home may be envious or appalled, but according to market data from DataQuick, sales for homes costing $5 million and above climbed 31 percent in the first quarter of 2007 compared to the same quarter in 2006. Sales of Manhattan apartments costing $10 million or more tripled in 2007, according to the real-estate company Prudential Douglas Elliman. How rich are these buyers? The brokers NEWSWEEK spoke to say many of their high-end sales represent the purchase of a second, third or fourth home. The bottom line? The rich are even richer than ever before and the very wealthy are pouring more money into residential real estate.

Click here to check out the rest of this article from Newsweek.

The Time to Buy a Home

Remember not that long ago when home sellers were calling the shots – dictating prices and terms to multiple bidders who were knocking down their doors in many markets?

Well, today, with the slowdown and changes in San Diego's real estate market, all the market fundamentals show that buyers are now in the driver's seat. Consider the facts: Prices are competitive, interest rates are very affordable, there are plenty of homes in all price ranges to choose from and sellers are more likely to bargain.

Click here to read the rest of this article in the San Diego Union-Tribune.

Homeowners Rush to Refinance

NEW YORK - This week's surprise rate cut by the Federal Reserve not only held Wall Street and investors in thrall, it's also kicked into high gear a rush by homeowners across the country to refinance their mortgages at today's lower rates.

Thirty-year fixed-rate mortgages now carry an average interest rate of 5.57 percent, down from 5.75 percent last week and from 6.32 percent a year ago, according to a Bankrate.com national survey. That's bringing them within shouting distance of the historic low of 5.21 percent set in June 2003, when the housing sector was expanding quickly and there was a stampede of mortgage refinancings.
Click here for more.

Baja Tries to Lure Tourists Back

TIJUANA – With cross-border visits showing marked declines, business and tourism officials in Baja California are going into full-scale damage control in hopes of regaining ground lost over the past year. There were 1.5 million fewer visitors in 2007 than there were in 2006. Ouch!

Baja has launched a program called called “Get Your Passport,” offers discounts at hotels, restaurants, bars and shops to those holding a U.S. passport. I don't know about you, but that's not enough to make me go back there after dozens of San Diego tourists have been robbed at gunpoint. Scary!

Click here for more.

World's Largest Swimming Pool Makes a Splash in Chile

Cannonball! Check this out--the Guiness Book of World Records named this pool in Chile the biggest in the world. This vast pool is more than 1,000 yards long, covers 20 acres, it's deep end is 115 feet (clear turquoise all the way to the bottom) and it holds more than 66 gallons of water.

The man-made saltwater lagoon has been attracting huge crowds to the San Alfonso del Mar resort at Algarrobo, on Chile's southern coast, since it opened last month. It's not hard to see why!

Click here for more.

Top Ten Reasons it's a Great Time to Buy Real Estate

I just love this article by Paul Pastore from Broker Agent News. It's true, true, true! And if predictions from all the analysts are correct, 2008 is going to be a fantastic year for buyers.

1. Selection, selection, selection. A few years ago, a buyer was forced to make compromises if they were going to locate the home of their dreams. But these days, there is a great selection of attached homes, condos, and townhouses. You can find large lots, small lots, and a lot that will accommodate your boat or RV. There are lots of options in this market.

2. No Bidding Wars. In 2005 we had one client that made an offer on ten homes. They lost the first nine to the 'feeding frenzy' that existed. Other buyers bid the properties up substantially from the original listing price. There were escalation clauses where buyers authorized their agents to outbid other offers by thousands of dollars. There is no competitive bidding in this buyer's market.

3. You can make an offer. A few years ago when you made an offer, the only question was how high above the list price could the buyer reach in hopes of being the best offer on the table. Today the sell price list vs. price ration is about 96%. A seller will not be insulted if you 'make them an offer they can't refuse'.

4. Patience is tolerated. In the hot seller's market that existed everything was rushed. Find a house before other buyers did. Hurry up and make the offer. Today a buyer can take their time. Look at several homes and think about your decision for a few hours.

Click here to read more.

Manhattan Defies Housing Slump

Don't let a slumping stock market shaken by a steep downturn in the national housing market fool you - Manhattan real estate is still red-hot.

According to the New York Post, the average sales price of apartments in the heart of New York shot up as high as 34% to $1.43 million - in the last quarter of 2007 compared to the year before, according to reports put out by the city's top real-estate brokerage firms.

Click here for more.