San Diego Ranked America's Second Most-Desirable City

Well, it's not hard to see why San Diego was ranked high in the Pew Research Center's list of "America's Most Desirable Cities." With our awesome climate, amazing beaches and exciting entertainment scene...what's not to love?

In a national survey released today which asked people where they would like to live, San Diego ranked second among 30 major metropolitan areas. Denver ranked first. Hmm. Denver sounds nice and all, but I just don't think it compares to America's Finest.

Click here for more on this story from the San Diego Union-Trib.

Deals Galore for Buyers in San Diego...prices down 46.7% from peak in some areas

For the buyers out there, it just keeps getting better and better. A study from Standard & Poor's Home Price Index ranked San Diego the sixth weakest housing market nationally, with prices overall down 25.8 percent in November from year-earlier levels.

The low-end of the market--properties priced below $306,500, saw the biggest year-over-year drop of 30.5 percent in November. (From the market high of 2006, this represents a whopping drop of 46.7%.)

Meanwhile, so-called "high end" homes more than $435,097, are experiencing deep price declines as well, with average sales price down 28.6% from June 2006.

A snipped from the article:
San Diego real estate agent Scott Voak says that high-end price drops are probably accelerating because credit-worthy owners who took out so-called Alt-A loans – those with negative amortization features, zero interest or zero down payments – are unable to cope with resetting monthly payments and having to sell at a loss.

“A lot of people in neighborhoods like 4S Ranch (west of Rancho Bernardo) and San Elijo Hills (in San Marcos) have those loans,” Voak said. “We saw a home sold for over $1 million about 2½ years ago, and the bank put it on the market for $729,000.”

Click here for the whole story from the San Diego Union-Tribune.

California Tops Foreclosure List for 2008

California tops the list of "Top 10 States By Foreclosure Filings in 2008".

Here's the list:
1.California
2. Florida
3. Texas
4. Arizona
5. Michigan
6. Georgia
7. Ohio
8. Nevada
9. Colorado
10. Illinois

Interested in learning more about investing in foreclosures in San Diego? Contact christinevt@prusd.com for more info.

What you Need to Know about Mortgages in 2009

I found this helpful article from MSNBC.com on understanding mortgages in 2009.

MSNBC.com: With all the doom and gloom over housing, you might be surprised to know that this is a fantastic time to get a mortgage. Not if you have poor credit, to be sure. But you can get a great deal on a 30-year, fixed-rate, conforming loan these days if you have a solid FICO score, a manageable debt burden, and proof positive of a reliable income.

You have to go back to around 1961 to find a time when 30-year mortgages had rates this low, according to Keith Gumbinger, a vice-president at financial publisher HSH Associates in Pompton Plains, N.J.

Rates are probably headed even lower in 2009, raising the question of whether you should borrow now or wait for a better deal. The experts are sharply divided over this one. Put it this way: If you're a gambler, wait. If you can't sleep at night worrying that rates will go up from here, borrow now.

Click here for the guidelines.

Frustrated sellers find short-term tennants with corporate rentals

I've had a lot of property owners ask me about short term "corporate rentals," and alas--here is an article from the San Diego Union-Tribune on the very subject. Looks like corporate renters are willing to pay a premium to rent in San Diego--provided the property is furnished and in a desirable neighborhood.

Here are some article highlights:

Sellers who are having difficulty finding buyers in the current apathetic market might want to consider entering their places into the corporate housing pool.
That's what Doug Black did, and he couldn't be happier.
When the Denver, Colo., businessman found it too difficult to carry two condominiums, he moved into the one he was renovating and put the one he was living in up for sale. But when he found no takers, he decided to list his fully furnished apartment with a do-it-yourself Web site called CorporateHousingbyOwner.com.
Black immediately landed a year's lease with a vice president for Quiznos, who was transferring to the sandwich-shop chain's headquarters near his condo. And since that lease expired in May, he has had several other, shorter-term tenants, including a delegate to the Democratic convention and a Canadian couple who were visiting their children during the holidays.

It isn't the only site on the Web aimed at corporate travelers – condo.com and rentalspacenetwork.com are a couple of others. There's even a trade group for landlords, the Corporate Housing Providers Association. But CHBO is the only one devoted solely to the field. The site currently includes more than 60 San Diego-area listings.

According to Kimberly Smith with CHBO, the military is the largest user of corporate housing. The armed services relocate some 600,000 people a year. And since there is typically a one-to three-year wait for on-base housing, the overflow is always looking for short-term housing.

Traveling nurses are another big user. Some 200,000 nurses move about the country annually, taking two-, six-and sometimes 12-month assignments as they go. Relocating businesses, summer interns, sports professionals, traveling showmen, insurance-company adjusters, people undergoing extensive medical treatment and “snowbirds” are also frequent short-term renters.

Click here for the entire article.

Some San Diego Zipcodes Go UP in Value

Look at that! According to the Union-Tribune, some San Diego zip codes are actually going UP in value.

San Diego County housing prices may have tanked in 2008, but there was a wide variation among neighborhoods, MDA DataQuick figures show. Some areas had median prices that were nearly 50 percent less than in 2007, but a lucky few actually showed price increases...like Solana Beach, downtown, Rancho Santa Fe and University City.

The bottom line, according to DataQuick analyst Andrew LePage, is that the neighborhoods with large price declines were fueled by a preponderance of low-cost foreclosure sales. By contrast, those areas with relatively few foreclosures suffered fewer, if any, price drops.

Click here for the full story.

Rates Drop Again!

From the Associated Press:

Rates on 30-year mortgages set a record for a fifth straight week by dropping to below 5 percent, the lowest mark since Freddie Mac started tracking the data in 1971.

Freddie Mac reported yesterday that average rates on 30-year fixed mortgages dropped to 4.96 percent this week, down from the previous record of 5.01 percent established last week. It was the 11th straight weekly drop.

For 15-year fixed-rate mortgage, rates rose to 4.65 percent from 4.62 percent last week, the lowest point since June 2003. For five-year, adjustable-rate mortgages, rates fell to 5.25 percent, the lowest since the week ending Sept. 8, 2005, when it averaged 5.24 percent. Rates on one-year, adjustable-rate mortgages fell to 4.89 percent from 4.95 percent last week.
The rates do not include add-on fees known as points. The nationwide fee for 30-year and 15-year mortgages averaged 0.7 point for this week. Fees for five-year adjustable rate mortgages averaged 0.6 point, compared with 0.5 point for one-year adjustable-rate mortgages.