San Diego Real Estate

Short Sale in Breesi Ranch Carlsbad

2011-04-15T21:50:00.000-07:00

Short sale in Bressi Ranch.
A great community in Carlsbad CA.

6259 Dartington Way. ( a few houses from where my family and I lived)

4 bed, 3 bath, 2700 sq feet
600,000

Contact us if you wish more info
john@favoriterealestate.com

More info and pictures are coming.

This is a few outside pictures for a listing which will get to the MLS in two days.

How to Close more short sales in California part 1

2011-03-20T18:04:00.000-07:00

Recently the California Association of Realtors mentioned that in a survey in which 2150, Realtors responded that only 60% of short sales closed.

Which would make one wonder what about all the Realtors who did not respond and all the short sales which did not have qualified buyers.

We have begun a series on how to close more short sales.

new listing 1708 thorley way, san elijo san marcos california

2011-03-14T12:37:00.000-07:00

san elijo homes for sale in San Diego california

Oceanside Home for Sale, short sale in Oceanside

2011-01-12T14:13:00.000-08:00

For more information on this oceanside home for sale

Rancho Bernardo Swim and Tennis

2010-09-25T10:24:00.000-07:00

Rancho Bernardon home for sale
Images of Rancho Bernardo swing and tennis.
This very nice club is part of the Home Owners Association is about a mile from the Rancho Bernardo in.

Oceanside Home for Sale, Oceanside CA

2010-08-27T16:09:00.000-07:00

San Elijo Home for Sale - Short Sale

2010-06-19T17:14:00.000-07:00

For more information about this San Elijo home for sale go to www.favoriterealestate.com

Carlsbad Real Estate, Home for sale, Seapoint tennis club

2010-04-19T19:33:00.000-07:00

Nonresident Property Owner Withholding

2009-12-29T18:23:00.000-08:00

Property managers will soon be collecting taxes on behalf of California against non residents.

This should create some very interesting issues.

Nonresident Property Owner Withholding: "Q 1. Who is a California nonresident property owner subject to withholding?

A Nonresident owners include the following:

. Individuals who reside outside of California,
. Corporations, Partnerships and LLCs who do not have a permanent place of business in California or who are not qualified by the Secretary of State to do business in California, or
. Estates and trusts who are nonresidents of California.

Q 2. Who is exempt from withholding?

A Those persons or entities exempt from withholding include the following:

. California residents,
. Corporations, Partnerships and LLCs qualified to business in California or who have a permanent place of business in California,
. Estates where the deceased was a California resident at the time of death,
. Nonresidents when the payments do not exceed $1,500 in a calendar year,
. Tax exempt organizations,
. California nongrantor trusts,
. A nonresident owner who has received either a Waiver or Reduced Withholding Exemption from the FTB.

NOTE: One fairly simple method for nonresident owners to be exempt from withholding is for them to form a California Corporation, Partnership, or LLC, or to have their foreign (out-of-state) Corporation, Partnership, or LLC qualified to do business in California with the Secretary of State. Depending on the income generated by the rental property, the cost of forming and maintaining such an entity may be justified to avoid withholding."

Luxury-Home Owners in U.S. Use ‘Short Sales’ as Defaults Rise - Bloomberg.com

2009-12-27T18:22:00.000-08:00

Luxury-Home Owners in U.S. Use ‘Short Sales’ as Defaults Rise - Bloomberg.com: "Upside Down Mortgages

“You are just starting to see the tip of the iceberg with luxury short sales,” said Adrian Heyman, owner of Property Advisors, a real estate broker in Scottsdale, Arizona. “A lot of wealthy people are upside down in their mortgages and they just can’t afford the second or third vacation home anymore.”

There are 114,000 home loans of more than $1 million, according to First American. About a quarter of all mortgaged homes in the U.S. have loan balances bigger than their current value, known as being upside down or underwater, the data company said."

WE are pretty sure we are about see a lot more short sales in Rancho Sante Fe and Mammoth Mountain.

Rancho Sante Fe short sales

Mammoth Mountain Short Sales

More homes are poised to hit the market -- latimes.com

2009-12-27T18:18:00.000-08:00

More homes are poised to hit the market -- latimes.com: "First American estimated that the inventory not yet on the market constituted a 3.3-month supply at the end of the third quarter, up from 2.4 months a year earlier. The number of homes for sale was 3.8 million, a 7.8-month supply at the current sales pace, First American said. That's down from 4.7 million, or a 10.1-month supply, a year earlier.

Stuart Gabriel, director of UCLA's Ziman Center for Real Estate, laid out a troubling scenario that could play out if shadow properties do hit the market early next year: a contagion effect in which waves of foreclosures beget more, taking down the values of entire neighborhoods. Concern over such an outcome could cause sellers and lenders to act more cautiously, slowing the pace at which they take back troubled properties, he said.

'Some are strategically holding property off the market and are only putting it back on in dribs and drabs,' he said. 'They're playing this interesting game where, on one hand, they need to liquidate these properties, but they can't create a downward implosion in prices that will come back and bite them even harder.'"

New drafts of real etate purchase and sale agreements

2009-12-22T11:34:00.000-08:00

CAR is revising it Real Estate purchase and sale agreements.
The changes are worth reading.
It is amazing how many ways there are to get of the contracts.
But, I do not blame CAR for that... we were all told in contracts class in law school
there has to be an element of good faith between the parties in all contracts.

Note some of the changes were adopted to allow for Short Sales.

New drafts of RPA & related forms are available: "New drafts of RPA & related forms are available
Print| E-Mail| Contact Us| Bookmark
Adjust Text Size:
A
A
A
+

Your input is invaluable to ensuring the forms relevance. Comments ranging from formatting to more substantive suggestions are welcome! Please click on the links below to review the respective forms and e-mail your comments to carforms@car.org

. Residential Purchase Agreement (RPA Draft 12-09)
. Table of Contents-Residential Purchase Agreement (TOC Draft 12-09)
. FHA or VA Notice and Addendum (FVA Draft 12-09)
. Wood Destroying Pest Inspection and Allocation of Cost Addendum (WPA Draft 12-09)"

San Diego home for sale

2009-12-07T11:48:00.000-08:00

As of todays date we are accepting offers on this home located at 4343 Ohio St. Number 3. San Diego CA 92104.

San Diego Real Estate for sale.

Pricing Carlsbad Real Estate

2009-12-07T11:33:00.000-08:00

This is an image of the National Association of Realtors Pricing pyramid.

What it means is that as you go up in price the probablity of find a buyer goes down.

As you become overpriced your buyer pool shrinks. Perhaps someone buying a house so that a relative can live next door will over pay.... but if the person is not buying with a large slug of cash the buyers lender will not let them pay much more than their appraisal anyway.

As you go under the fair market value you will set the investor pool in action so you will get offers relatively quickly.

If you go 20% below value you will probably get an offer within 24 hours.

Our experience selling our own investments and selling dozens of short sales proved to us that if you price your property a little low you have a very good chance of getting multiple offers. Frequently, we even have offers pay through the our slighly low list price to Fair market value or more.

I can not tell you how many times I had to tell Realtors in my office to the lower the price of their short sales.
I said look there are thousands of people on the internet with IDX alerts. When you price gets below their fair market value price - the phones start ringing off the hook. At first they did not believe me.

Later they just said -- lowered the price - phones started ringing.

Getting offers is all about price and showings.

If you do not care about your net lower the price.

If you care about your net - make sure your house shows well and offer buyers agent a higher than typical commission.... and let them know about it.

We will discuss that pricing strategy in the future.

Carlsbad and San Diego real estate prices.

how to sell a short sale properly

One in Four Borrowers Is Upside Down according to WSJ

2009-11-26T10:15:00.000-08:00

One in Four Borrowers Is Underwater - WSJ.com: "But negative equity 'is an outstanding risk hanging over the mortgage market,' said Mark Fleming, chief economist of First American Core Logic. 'It lowers homeowners' mobility because they can't sell, even if they want to move to get a new job.' Borrowers who owe more than 120% of their home's value, he said, were more likely to default."

for more on loan modification and walkaway plans

more pictures from our currently listed vista short sale

2009-11-19T18:32:00.000-08:00

more pictures from the short sale in vista ca.
carlsbad and vista real estate

Vista short sale in Shadowridge

2009-11-19T18:29:00.000-08:00

here are pictures from our recent listings in the shadowridge area of vista. This property is part of the best school districts in vista.

The highs school is walking distance and the community has pool behind the property.

for more info on buying short sales

REALTOR® Magazine-Daily News-IRS Cracking Down on False Tax Credit Claims

2009-08-08T22:06:00.000-07:00

REALTOR® Magazine-Daily News-IRS Cracking Down on False Tax Credit Claims: "IRS Cracking Down on False Tax Credit Claims
The IRS is cracking down on people who don’t qualify for the first-time homebuyer tax credit but try to claim it anyway.

The IRS says it is investigating 24 cases of people who falsely claimed the first-time homebuyer credit on their federal income tax returns. Getting caught making a false claim carries a penalty of up to three years in jail and a fine of as much as $250,000.

The First-Time Homebuyer Credit, enacted in 2008 and modified in 2009, provides up to $8,000 for first-time homebuyers. The purchaser must be someone who has not owned a primary residence in the previous three years. If the taxpayer is married, this requirement also applies to the taxpayer’s spouse."

Appraiser Checklist: Home and Design: REALTOR® Magazine

2009-08-08T22:04:00.000-07:00

Appraiser Checklist: Home and Design: REALTOR® Magazine: "Appraiser Checklist

Help clients understand what to expect during the appraisal process by sharing information on how appraisers reach their property value estimates.
By Barbara Ballinger | April 2009

Here are some of the factors that appraisers Joni L. Herndon of Real Property Analysts/Gulf Coast in Tampa, Fla., and John A. Hillas of Hulbert & Associates Inc. in Modesto, Calif., say they consider when determining value.

* Incentives and concessions. Most of today’s buyers expect to pay the lowest possible price and still get some extras. Sellers and home builders are offering money toward closing costs, remodeling and decorating, upgrades, and association dues. The price set initially may not be the final price once concessions are factored out. Appraisers care about that final number."

info buying and selling homes in san diego and orange county

Home for sale in Oceanside Ca, San Diego house for sale, not a short sale

2009-08-02T14:02:00.000-07:00

Just listed on the 08/02/09. Oceanside CA. Great views. Open floor plan. Vista Schools. Not a short sale.

For more info on our listings and homes for sale in San Diego

Freddie Mac Calls for Appropriate Comparables

2009-07-20T16:46:00.000-07:00

Home Valuation Code of Contact.

IMO the lenders were using the Federal Government to make more money.
The legislation obviously distorted the market.
Now one of the big players says - hold on sure you lenders are able to make more money by controlling the appraisers but we need good comps. Not the ones your crappy out of town appraisers are providing.

Let me just say, the upside down market had been very good to me. But, I am concerned about our children's future.

My concern is that the banks and Congress are doing everything possible to make sure that we have an upside down real estate market for 5-10 years. San Diego may recover a little more quickly but I expect to be doing short sales for at least 3 more years.

appraisals real estate prices and San Diego short sales

REALTOR® Magazine-Daily News-Freddie Mac Calls for Appropriate Comparables: "Freddie Mac Calls for Appropriate Comparables
A July 10 lender bulletin from Freddie Mac says appraisers 'must be familiar with the local market,' select 'appropriate comparable sales,' and certify them as 'most similar' to the property in question."

craigslist | about > FHA

2009-07-14T12:43:00.000-07:00

Thought I would link to this information on Craigslist which gives a summary of housing discrimination law.

craigslist | about > FHA

As I was reading this I had two thoughts

I am all in favor of equal opportunity for all.

But I think this is a disgusting intrusion by the government into a person property rights.

I found it so nice of the government to allow a person to show a sex preference when renting a shared home. What the hell is the government doing in that area of the law anyway?

Just a rant. I know some will take this the wrong way, but it was not meant to anti minorities. Just anti big brother socialist government.

Market Snapshot for Carlsbad Real Estate

2009-07-10T13:40:00.000-07:00

Market Snapshot

Carlsbad Homes priced form 500,000 to 1 million - in 92009 zip code

You can see sales are slow but inventory is dropping

Will high end homes in rancho sante fe and la jolla drive down average home prices

2009-07-10T12:59:00.001-07:00

REALTOR® Magazine-Daily News-Prices Slide in Wealthiest Towns

Prices Slide in Wealthiest Towns
America’s high-end neighborhoods could feel the pain as homes linger on the market and prices slide.

There are more than 60,000 homes priced above $1 million listed on Realtor.com with the inventory at levels far above the national average of 10 months.

Some observers predict that big inventories in formerly protected enclaves will drive down prices as much as average prices fell in less-pricey metros a year ago. "Any [inventory] over seven months generally means falling prices," says David Stiff, chief economist at Fiserv in Brookfield, Wis.

rancho sante fe real estate

San Diego Real Estate sales

2009-07-10T12:57:00.001-07:00

Right now there is strong demand for san diego real estate and limited inventory of homes under 600,000.
It will be interesting to see if these promised foreclosures drive down prices.

REALTOR® Magazine-Daily News-Another Rash of Foreclosures Coming Soon

Another Rash of Foreclosures Coming Soon
Some economic observers are predicting another wave of foreclosures later this summer or in the fall. That’s because lenders that have held off on foreclosures as part of President Obama’s plan will now move forward aggressively to clear the backlog of troubled mortgages.

Rising foreclosures will further depress home values, says Mark Zandi of Moody's Economy.com, who calculates that 15.4 million home owners—one in five of those with first mortgages—will be underwater.

To find out if the real estate market has stabilized.

REALTOR® Magazine-Daily News-How to Capture Home Photos That Sell

2009-07-10T10:50:00.000-07:00

REALTOR® Magazine-Daily News-How to Capture Home Photos That Sell: "How to Capture Home Photos That Sell

* Use a flash – even if you don’t need it, force it to work. It will make the room look brighter.
* Take exterior shots when the sun is shining. If the picture is still dark, lighten the exposure by pushing the exposure-compensation button (the one with the +/- on it).
* Keep the image level and straight. Shooting upward on a house will distort it. Get on a stepladder or shoot from across the street.
* Avoid glare on the lens. Use an umbrella to avoid sunspots.

for more tips click on the link above

San Diego Real Estate

Foreclosure Law as it applies to tenants - tenants get help from fed

2009-07-02T13:44:00.001-07:00

Tenants in San Diego are getting help from the feds. (they already have protection under California law.)

Federal Issue Information: Housing Issues Update

S. 896, the “Helping Families Save Their Homes Act of 2009” included some provisions to protect tenants from eviction as a consequence of a foreclosure affecting the property being rented. Many examples were seen of families living in rental housing throughout the United States who were evicted without any prior notice when the home where they had lived was foreclosed upon. Much of the time, the rental family had no idea the home was in delinquency or subject to foreclosure until their eviction.

I'm a Realtor®. What does this mean to my business?
Notification will have to be provided to tenants of rental housing before they can be evicted following a foreclosure.

NAR Policy:
NAR supports programs to reduce the impact of foreclosure on communities.

Legislative/Regulatory Status/Outlook:
Under the new law, which went into effect on May 20th, tenants will have to receive 90-days notice prior to being evicted, when their rental home is foreclosed upon. In addition, tenants must be allowed to stay in the property through the end of their lease, with two exceptions:

* The new owner wants to occupy the property as a personal residence, and
* There is no lease (month to month), or there is a lease but state law allows the lease to be terminated at any time upon notice.

San Diego real estate

California Real Estate home prices

2009-06-22T09:23:00.000-07:00

Here is an interesting article by the economist of the National association of Realtors.

I do not necessarily agree with his conclusions, I do think the article is food for thought.

(I am still waiting to call a long term bottom in San Diego and Orange and Riverside counties. I need to see how many Bank owned properties are unloaded onto the market over the next six to twelve months.)

Real Estate Insights: "Home sales in the hard-hit California market have recently reached levels that are nearly twice as high compared to when they were in the trough. Evidently the California housing market is experiencing a tipping-point phenomenon: potential buyers suddenly wanting to enter the market all at once. People have waited and waited for the best time to enter the market. Why buy now if prices will be lower later? After having tumbled from unsustainable heights, home prices there are highly attractive and within budget for many fence-sitters. So when some buyers started to enter the market, other bystanders just couldn’t let others take advantage of the great buying opportunity. Many are now fighting to jump into the market. Multiple-bidding on lower-priced homes are said to be common in California. People who “lose out” during a bidding war don’t simply go home and wipe away their tears -- they come back with almost vengeance-like determination and hope their next bid will be the highest. What does that mean for home prices? Though the year-over-year price measurement will continue to show declines in California, probably for the remainder of the year, the month-to-month price trends will more likely be on an upswing. In short, people who buy in June 2009 will likely see a price gain in June 2010."

short sales san diego

san diego real estate prices

Obama new plan for destroying Wealth - Make high end homes major liabilities

2009-02-26T18:00:00.001-08:00

I find it very difficult to believe that a person spending as much as President Obama wants to propose such a measure now.

I was once told to not judge a man by his words but by his deeds.

1. bail out banks instead of homeowners
2. Drive the federal deficit higher
3. Give trillions to zombie banks (while destroying their assets)
4. Further crater the value of real estate by making it less tax deductible.

Obama seems to be on a mission to restrucuture America.

Look out Rancho Sante Fe, Del Mar and LaJolla. Obama is coming for your money even if it means he has to collapse the price of Real Estate further.

The Associated Press: Under Obama plan, tax burden shifts to the wealthy

Couples making more than $250,000 would face new limits on the amount of deductions they could take on their taxable income, including deductions for mortgage interest, charitable donations and state and local taxes. The change would raise about $180 billion over 10 years.

Forecast for San Diego Real Estate prices

2009-01-08T09:35:00.001-08:00

San Diego has a least a years supply of housing and we suspect there is a lot of housing not even on the market that will be becoming on the market. The problem is, the buyer pool can not qualify for the mortgages. The demand is there, but the salary power is not.

Gary Shilling's 2009 Predictions More of the Same Pain: Tech Ticker, Yahoo! Finance

If you're betting the economy will recover in the second half of this year and should be buying stocks now in anticipation, economist Gary Shilling, president of A. Gary Shilling & Co., isn't your guy. Shilling -- author of the popular INSIGHT newsletter -- says the recession will run for the duration of this year and stands by a forecast for the S&P 500 to hit 600 in 2009.

A recovery isn't likely until 2010 -- at the earliest -- says Shilling, who is effectively doubling-down on his 2008 predictions, which proved eerily prescient.

Shilling is bullish on the dollar and cautiously optimistic about high-grade corporate debt, but doesn't see much to be hopeful about from the long side in 2009.

Nearly 20% of home owners are upside down. 27.4% of Californians

2008-11-07T12:32:00.001-08:00

Almost 10 million homeowners are 'underwater' or just above - Oct. 31, 2008

7.5 million homeowners 'underwater'
Nearly a fifth of U.S. borrowers owe more on their mortgages than their homes are currently worth - and that number is growing.

Top 10 states with underwater loans
State # of mortgages % underwater
Nevada 609,577 47.8%
Michigan 1,145,572 38.6%
Arizona 1,287,076 29.2%
Florida 4,248,470 29.2%
California 6,461,981 27.4%
Georgia 1,456,327 23.2%
Ohio 1,905,000 22%
Colorado 1,045,773 18.3%
New Hampshire 144,479 17.2%
Texas 2,721,638 16.5%
Source:First American CoreLogic
Top 10 states with the fewest underwater loans
State # of mortgages % underwater
New York 1,554,607 4.4%
Hawaii 201,188 5.6%
Pennsylvania 1,413,181 5.7%
Montana 87,181 6.9%
Connecticut 678,766 7.4%
Alabama 238,978 7.4%
Oregon 641,820 7.5%%
Washington 1,273,659 7.6%
New Mexico 186,844 8.2%
New Jersey 1,748,179 9.3%
Source:First American CoreLogic
Special Report
Mortgage Meltdown

* September pending home sales fall
* Mounting job losses fueling foreclosures
* Mortgage rates fall
* JPMorgan Chase expands housing rescue plan

Bankrate.com
Current Mortgage Rates

Type Overnight avgs
30 yr fixed mtg 6.03%
15 yr fixed mtg 5.72%
30 yr fixed jumbo mtg 7.49%
5/1 ARM 5.93%
5/1 jumbo ARM 6.18%
Find personalized rates:

NEW YORK (CNNMoney.com) -- At least 7.5 million Americans owe more on their mortgages than their homes are currently worth, according to a real estate research firm's report released Friday.

In other words: If they sold their homes today, they'd have to bring a check to the closing. Ouch.

Another 2.1 million people stand right on the brink, according to the report by First American CoreLogic. Their homes are worth less than 5% more than the mortgages they're paying on them.

The technical term for this phenomenon is negative equity; more colloquially, these borrowers are often referred to as being "underwater."

"Being underwater leaves homeowners vulnerable to foreclosure," said Mark Fleming, CoreLogic's chief economist.

Sell your San Diego Home fast -

2008-10-15T16:48:00.001-07:00

Sell your home fast in any market - Selling Your House - MSN Real Estate

Home sellers now face market conditions that resemble a beach in a nor'easter: As they struggle against the gale-force winds of record-high inventory, a tide of declining home prices — made worse by rising foreclosures — continues to undercut their position.

Sales perked up temporarily last spring. That may be because buyers were responding to lower prices, especially in the entry-level range. But it could also have been the usual seasonal upswing. And forecasters aren't optimistic about a true turnaround any time soon, given the chill of the credit crunch and declining confidence in the economy.

Setoff Against Unsecured Deficiency of Debt Owed by Creditor Contravenes Policy Underlying Antideficiency Laws

2008-09-16T18:23:00.000-07:00

Setoff Against Unsecured Deficiency of Debt Owed by Creditor Contravenes Policy Underlying Antideficiency Laws: "Section 726 of the California Code of Civil Procedure embodies the 'one form of action' rule. In pertinent part, section 726(a) provides:

There can be but one form of action for the recovery of any debt or the enforcement of any right secured by mortgage upon real property or an estate for years therein, which action shall be in accordance with the provisions of this chapter.

Section 22 of the Code of Civil Procedure defines 'action' as follows: 'An action is an ordinary proceeding in a court of justice by which one party prosecutes another for the declaration, enforcement, or protection of a right, the redress or prevention of a wrong, or the punishment of a public offense.'

The court recognized that a nonjudicial foreclosure is not an 'action' within the meaning of sections 22 or 726; hence, a nonjudicial foreclosure does not violate the one form of action rule embodied in section 726. Nevertheless, the court found that the setoff contravened the 'economic policy considerations' underlying the antideficiency statutes.

The court looked to the policy considerations underlying section 580b of the Code of Civil Procedure. Section 580b precludes a deficiency judgment after foreclosure, judicial or nonjudicial, under a purchase money deed of trust given to the sell"

Mortgage rates, price of real estate and the fannie and freddie bailout

2008-09-15T13:06:00.001-07:00

This is a excellent explanation or what may happen with mortgage rates going forward.
Remember is from the National Association of Realtors - so it could be biased. But, the author's logic is solid.

E conomist's Commentary: September 8, 2008

Mortgage rates will trend down over the short run. But how much of a decline will depend on how actively the government - more specifically the Treasury Department and the FHFA - loosens their mortgage liquidity spigot. For over the next 12 months at least, the FHFA has the authority to purchase more than the normal amount of mortgages from lenders to put into their portfolio holdings. That means all conforming loans, including the newly conforming jumbo loans up to $625,000, will qualify for purchase by the FHFA. That will help drive down mortgage rates. In about two year time, when the housing recovery is assumed to be well underway, the government will trim its mortgage portfolio. Then Fannie and Freddie will be completely restructured. It will be up to the next administration and Congress to determine that structure in for which NAR will make our 1.3 million voices heard.

Inflation up - Gross Domestic Product is really negative

2008-09-11T17:25:00.001-07:00

This would explain why it is much easier to get a steak at our favorite family steak house in San Diego and it may explain why real estate agents who deal with higher end properties report a belief that prices are falling. The good times are not rolling like that did a few years ago in San Diego.

However, the are a heck of a lot better then parts of florida.

The Big Picture | GDP fails ‘commonsense sniff test’

To strip inflation out of the data, the government devises a "deflator" that subtracts inflation from nominal GDP. In the second quarter, that deflator was 1.3, a figure that was half what it was in the first quarter and tied with a 10-year low. Starting with nominal GDP of 4.6 and subtracting that 1.3 deflator, we get real GDP of 3.3.

If the government had used the same deflator as it did for the first quarter, 2.6, GDP would have only been 2.0.

Consumer inflation for July was the fastest it had been in a generation, moving up at a rate of 5 percent for the previous 12 months. Had the deflator been that large, we would have seen negative growth for the second quarter." (emphasis added)

San Diego Real Estate prices

2008-09-11T17:20:00.001-07:00

In this blog read that the inflation rate is much higher than the 4 percent we are being told.

If we use the pre 1998 calculation we are running at a 7 percent inflation rate and if we use the pree 1983 inflation rate we are running at over 11% inflation.

Which is what it fells like.

So how will this effect real estate prices....

Well if inflation really kicks in salary will begin to inflate, the dollar will devalue and then eventually assets will probably increase in price.

The Big Picture | Inflation Abounds

Inflation Abounds
Tuesday, April 29, 2008 | 01:00 PM
in Federal Reserve | Inflation

The Federal Reserve is now in day 1 of their two day meeting. The statement we get tomorrow, and the minutes we will read next month are likely to be intriguing.

Bizinflate430

CAR explains what fannie and freddie mean to California real estate prices and sales

2008-09-11T15:56:00.001-07:00

My response to this kind of support for a government bailout of California real estate is mixed. I believe that fannie and freddie have been subsidizing loans in a stupid manner for a long time. Making borrowing much to easy. Consequently prices were too high and now the tax payer is going to to get crushed.

The problem is - if we do not bail them out now -- we would probably see a depression.

This is why governments do not need to be involved in private businesses. Sure the should prevent monopolies but did we really need them subsidizing loans. I would be prices would have been lower - interest rates would have been higher and monthly payments would have stayed at more realistic levels if fannie and freddie did not lend on risky deals.

Sure they help home ownership for a few years - but at what cost. Look at how much this is going to cost. Plus I will bet half the people who bought a home in San Diego wish they had not paid so much.

Gmail - C.A.R. Newsline - jmcconnin@gmail.com

Under the conservatorship, both GSEs will be allowed to increase their mortgage funding over the next year and a half, then, beginning in 2010, the plan calls for a reduction in their portfolios of 10 per cent a year until they have been reduced to $250 billion. As part of this weekend's action, both CEOs were relieved of their duties and Herbert Allison, former Merrill Lynch vice chairman, and David Moffett, former U.S. Bancorp CFO, were selected to lead Fannie Mae and Freddie Mac, respectively.

In light of the U.S. Dept. of the Treasury's action, C.A.R. this week reaffirmed its support for Fannie Mae and Freddie Mac and their countercyclical roles. While the short-term impact of the Treasury's actions over the weekend served to calm the markets and restore confidence, in the longer term these entities need to be able to fulfill their historic mission. A privatized Fannie and Freddie will short-circuit the countercyclical role the GSEs have played during precarious times in real estate markets.

.....

In light of the U.S. Dept. of the Treasury's action, C.A.R. this week
reaffirmed its support for Fannie Mae and Freddie Mac and their
countercyclical roles. While the short-term impact of the Treasury's
actions over the weekend served to calm the markets and restore
confidence, in the longer term these entities need to be able to
fulfill their historic mission. A privatized Fannie and Freddie will
short-circuit the countercyclical role the GSEs have played during
precarious times in real estate markets.

Where is the price of San Diego Real Estate heading

2008-09-08T14:26:00.001-07:00

These graphs are interesting - but remember these arguments were around on the way up as well.
As with other markets - it is all about sentiment of borrowers and the supply of cheap and easy money.

Calculated Risk

Our economy and our markets will not recover until the bulk of this housing correction is behind us."
Treasury Secretary Hank Paulson, Sept 7, 2008

So when will the "bulk of this housing correction" be behind us? Right now prices are still too high.

Here are a few ways to look at house prices: real prices (inflation adjusted), price-to-rent ratio, and price-to-income ratio.

The first graph compares real and nominal Case-Shiller Home Prices through Q2 2008 (real is current index adjusted using CPI less Shelter).

A look at home prices around the country

2008-09-01T12:07:00.001-07:00

Housing market shows a hint of hope - USATODAY.com

New housing reports out Tuesday show some of the first glimmers of stabilization in the troubled housing market, but economists say there are still significant risks that could undermine a recovery.

Home prices fell at a slow pace for the fourth-consecutive month in June, with prices in 20 major metro areas down 0.5% for the month. The decline is far less than the 2% monthly drops seen earlier in 2008, according to the S&P/Case-Shiller home price index. And, in June, prices in nine of the 20 metro areas measured showed a gain from the preceding month, up from seven metros in May.

HOUSING HELP: Down payment aid program nears end

"The bottom of the national housing market is in view," says Mark Zandi, chief economist at Moody's Economy.com. "The rate of (price) decline is slowing, and there are signs of stabilization in some markets." But troubles persist. The decline in home prices year-over-year remained in the double digits, with prices a record 15.4% lower in the second quarter of 2008 than in the second quarter of 2007. From the housing market peak two years ago, the index report said, housing prices are off 1

Homebuilders sentiment is still low

2008-08-28T18:27:00.001-07:00

Home builders stay grim in August | Reuters

WASHINGTON (Reuters) - Home builder sentiment was stuck at a record low in August, as stringent lending and a flood of foreclosed homes dragged on the real estate market, according to data from the National Association of Home Builders released on Monday.

The NAHB/Wells Fargo Housing Market index held at 16 in August for a second straight month, the group said in a statement.

The August figure matched the median forecast among analysts surveyed by Reuters. Readings below 50 mean more builders view market conditions as poor than favorable.

Despite the weak reading, the Washington trade group said its members hope a recently enacted home buyer tax credit will bolster housing appetite.

What will happen to San Diego Home prices and Real Estate if fannie and freedie go under --

2008-08-28T17:22:00.001-07:00

The California Association of Realtors sent the following to my email.

GSES HAVE MORE OPTIONS THAN NATIONALIZATION
Contrary to recent news reports, nationalizing Fannie Mae and Freddie Mac is not the only option available to the two mortgage giants, according to a Citigroup analyst quoted in a recent "Reuters" story.

Adding that the GSEs are most effective in their current form and that nationalizing them is unnecessary, the analyst detailed other available options, including: policymakers emphasizing the benefits of the recently adopted backstop plan; the GSEs selling mortgage-backed securities to the Treasury; the regulator lessening capital surplus requirements; and/or all parties waiting until market conditions improve.

C.A.R. supports Fannie Mae and Freddie Mac in their current structure. Created to ensure that an affordable and stable flow of capital is available to lenders for home loans regardless of market conditions, the nationalization or elimination of the GSEs would have severe repercussions for homeowners and the economy, including:

- An instant shortage of capital to the mortgage market, leaving only FHA and VA as a stable source of capital for homebuyers.
- A rapid increase in interest rates on all non-government mortgage products, sinking the nation's housing market and quickly raising the costs of homeownership.
- Homebuyers being forced into exotic loans because of their inability to afford the initial high costs of non-conforming, fixed-rate mortgages.
- Many low- and moderate-income households unable to purchase homes because of the high costs of mortgage-financing.

Ca Home sales - media price falls 40 percent.

2008-08-28T17:17:00.001-07:00

Just thought some day keeping this information in a blog would be interesting. San Diego seems to be experience the same type of split market.

C.A.R. July 2008 Sales and Price Report

The statewide sales figure represents what the total number of homes sold during 2008 would be if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The median price of an existing, single-family detached home in California during July 2008 was $350,760, a 40.3 percent decrease from the revised $587,560 median for July 2007, C.A.R. reported. The July 2008 median price fell 4.5 percent compared with June’s revised $367,130 median price.

"Once again, the 40.3 percent year-to-year decrease in the median price of a home was an all-time record, surpassing the previous record set in June with a 37.9 percent decrease," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.

"Since the statewide median remained in the $585,000-$595,000 range through August of last year, the market will continue to experience significant year-to-year adjustments through August even if the median price holds steady over the next few months," she said. "The statewide median was last in the $350,000 range in early 2003."

2008-08-18T14:49:00.001-07:00

It have been reported that Fannie and Freddie have serious financial trouble and loans. It had been hoped by many here in San Diego that lending standards were going to get a little easier to meet. It was reported on CNNmoney that standards are going get tougher.

The Big Picture | Uh-Oh! Bad Sign on Fannie & Freddie

Marketwatch reports that the government discussed a contingency plan in case the unthinkable happens, and Fannie Mae (FNM) and Freddie Mac (FRE) were to fail.

But don't worry -- the Bush administration DOES NOT expect the entities to fail. And, they note no rescue plan is imminent.

Rex Nutting says Uh-Oh! This is a major contrary indicator, and it suggests Freddie and Fannie are toast!

Why?

"Is there any surer sign of an impending disaster than a reassurance from the White House that it doesn't expect it to happen?"

Rex adds this short list of other things that the Bush administration didn't expect:

Terrorists to fly airplanes into buildings.

Saddam Hussein to have been telling the truth about not having any weapons of mass destruction.

Iraqis to object to a long-term occupation by a foreign power.

Hurricane Katrina.

People in New Orleans to object to the government's response to Hurricane Katrina.

The Democrats to take control of Congress.

The Democrats to cave in so easily on important issues after they took control of Congress.

California Home prices dropping

2008-08-13T18:56:00.003-07:00

Bloomberg.com: News

Almost $1.3 trillion of homeowner equity was lost in California since home prices peaked in December 2005, Zandi said. Discounts of as much as 50 percent will extend into 2010, helping clear a glut of foreclosures and leading to a more balanced housing market, said Ryan Ratcliff, an economist at the Anderson Forecast at the University of California in Los Angeles, and Christopher Thornberg, principal of Beacon Economics LLC in Los Angeles.

``Half off in a decent neighborhood is close to the bottom,'' said Bill Gross, co-chief investment officer of Newport Beach, California-based Pacific Investment Management Co., manager of the world's biggest bond fund. Property markdowns of 30 percent to 40 percent give the market ``price illumination if not sunshine,'' he said.

`Beginning to Happen'

California led the U.S. in default notices and bank seizures for the 18th straight month in June and had seven of the 10 metro areas with the highest foreclosure rates, according to Irvine, California-based RealtyTrac Inc., which sells default data. That drove down prices and led to ``discounted distressed sales,'' with two-thirds of transactions under $500,000, compared with 40 percent a year earlier, the California Association of Realtors said.

Is it time to buy or time to sell - Home prices down

2008-08-13T18:56:00.001-07:00

Should you buy a home now? - Los Angeles Times

he drop in prices may mean it's time to jump in. Or is it too soon? Experts offer pros and cons.
By Peter Y. Hong, Los Angeles Times Staff Writer
August 3, 2008
Southern California median home sale prices are down about 30% from their peak. That's about as far as they fell in the 1990s real estate downturn, and enough of a decline to have many asking: Is it time to buy? ¶ Some are already answering with their checkbooks. In the inland areas where prices have crashed hardest, buyers are slowly returning. ¶ But many of those who study housing markets say the worst is yet to come for real estate. Buy now, they warn, and you'll regret it as prices continue falling. ¶ Others contend that prices are low enough that renters who aspire to own should buy now so they can start building their equity. ¶ Predicting price trends is a dodgy business, and there's no one right answer for everyone. But if you are thinking about buying now, here are some pros and cons to consider.

Home builders losing money as sales are weak in San Diego and inland empire

2008-08-01T09:17:00.001-07:00

Home builders battle to survive - Los Angeles Times

he Ryland loss followed a report earlier this week that June housing starts were down 44% in California from a year earlier. "It's very bad, the worst I've seen," said Mick Pattinson, a 32-year industry veteran and chief executive of Barratt American, a private builder based in Carlsbad. "It's impossible to build anything today at a profit, so builders are either taking losses or have pretty much stopped building," he said.

Pattinson said his company, which builds in San Diego County and the Inland Empire, is down to 40 employees, from a high of 140.

"We're trying to stay alive," said Pattinson, whose company is scraping by with reconstruction work in fire-damaged parts of San Diego and a few custom home orders.

In addition to the 44% decline in housing starts last month, the California Building Industry Assn. said its latest figures on new-home sales showed a 51% drop-off in May from a year earlier.

Hopes for a recovery "have fallen apart" and that is "going to make the rest of 2008 a rocky ride for home builders," said Jonathan Dienhart, research director of Hanley Wood Market Intelligence, which prepared the builders group's report.

Home prices fall in San Diego - again

2008-08-01T09:15:00.001-07:00

Home prices continue sharp descent - May. 13, 2008

San Diego-Carlsbad-San Marcos, CA $459,000 -22.9%

California Real Estate prices drop - sales increase

2008-07-30T23:44:00.001-07:00

The following stats are consistent with what we are seeing in the San Diego Market. Lots of offers on the lower priced property. Higher end properties moving more slowly and prices starting to come down due to all the foreclosures.

C.A.R. June 2008 Sales and Price Report

LOS ANGELES (July 25) – Home sales increased 17.5 percent in June in California compared with the same period a year ago, while the median price of an existing home fell 37.7 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

“Statewide home sales remained above the 400,000 level for the second month in a row, and up nearly 18 percent from a year ago,” said C.A.R. President William E. Brown. “Following a 30-month string of year-to-year percentage decreases that began in October 2005, sales last month also posted their third consecutive year-to-year gain.

“Sales were driven in part by large shares of deeply discounted distressed sales in many parts of the state,” he said. “With lower prices and favorable interest rates, affordability also has improved significantly in recent months, paving the way for many buyers to purchase their first home.”

2008-07-27T15:46:00.001-07:00

June 2008 Sales and Price Report

C.A.R. reports sales increased 17.5 percent; median home price fell 37.7 percent in June

LOS ANGELES (July 25) – Home sales increased 17.5 percent in June in California compared with the same period a year ago, while the median price of an existing home fell 37.7 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

“Statewide home sales remained above the 400,000 level for the second month in a row, and up nearly 18 percent from a year ago,” said C.A.R. President William E. Brown. “Following a 30-month string of year-to-year percentage decreases that began in October 2005, sales last month also posted their third consecutive year-to-year gain.

“Sales were driven in part by large shares of deeply discounted distressed sales in many parts of the state,” he said. “With lower prices and favorable interest rates, affordability also has improved significantly in recent months, paving the way for many buyers to purchase their first home.”

San Diego Real Estate for sale

2008-07-08T17:59:00.000-07:00

Pacific Beach San Diego Property for sale. This is a short sale in San Diego California. For more information please go to our website at www.favoriterealestate.com

Carlsbad Home for Sale

2008-07-08T17:55:00.000-07:00

This a great home in Carlsbad, North County San Diego California 92009. Depending on the offer made by the potential buyer it may turn out to be a short sale, which could take a few months or it could be standard sale and therefore close rather quickly. It is listed at 1,150,000. For more information about this property visit the our listings link on the side of this blog or got to www.favoriterealestate.com

photos short sale, Diamond Street condo - Pacific Beach San Diego

2008-07-08T17:47:00.000-07:00

More information about this Condo for Sale in San Diego California is avaliable on the our listings page at www.FavoriteRealEstate.com

Walk Away Plans San Diego Real Estate

2008-06-22T14:41:00.000-07:00

Walking Away from Your Home Loan or Mortgage? Why? Is it right?

One position holds that a contract is a promise and a promise is a bond. (if you are in default on your loans you have probably heard this argument from bill collectors. But, is it correct?
a. Is a Contract soley a promise or is it are complicated arrangement.
b. If you default on our duty, you are probably in breach of contract
c. The lender will have remedies provided by the contract and provided by State Law
d. Within legal circles there is an argument that a breach of a contract is not a moral decision but a business decision… A seller chooses to allocate his or her resources in a new manner. (presumably a more efficient manner) The lender is now entitled to contractual remedies (or the ones proscribed by law). This has been referred to an efficient breach. In other words the breaching party chooses to allocate resources elsewhere and the party who deal has been breached can elect to pursue its remedies. Remarkably many sellers see that it is pointless to keep paying big money for a home which may be upside down for years. They therefore choose to allow the lender to pursue its remedies. Some sellers are even buying a short sale for foreclosure down the block and then going into default on their upside down property.
e. California has designed laws to protect consumers from the consequences of purchasing overpriced property. California’s legislature decided decades ago to protect buyers of real estate from sellers and lenders who facilitate the purchase of the property. See California Code of Civil Procedure 580.
f. Finally, and this is why I enjoy helping sellers, the lenders gave out loans without properly qualifying borrowers. This caused price to rise to heights it could not normally have reached. It resulted in a “tax” on Californians. Real estate loans went form 30% of our income to 70%. Those lenders gave 100% loans to people and paid 1-6% to mortgage brokers for an opportunity to package those loans and blow up pension funds and school teacher retirements. I have no reason to believe anyone who is stuck in over priced house should feel beholden to the lenders. The lenders made a business decision to bet on increasing prices and gorge on short term bonuses. Some real estate purchasers were greedy as well but anyway you slice prices were artificially high. Lenders provided the punch bowl for the real estate party and then took it away.

San Diego short sales and foreclosure

2007-10-28T10:39:00.000-07:00

San Diego short sales information is available at http://san-diego-short-sales.blogspot.com/

San Diego foreclosure information is available at
http://san-diego-foreclosures.blogspot.com/

San Diego fire insurance claims info":
http://california-fire-insurance-law.blogspot.com/

San Diego short sale and foreclosure lawyer and help
http://upsidedownrealestate.com

SignOnSanDiego.com > News > Business -- The market for condo hybrids is trending down, experts say

2007-07-08T08:47:00.000-07:00

SignOnSanDiego.com > News > Business -- The market for condo hybrids is trending down, experts say

Yet some real estate experts say the market for condo-hotels has changed, tracking a similar downturn in the traditional condo market. In San Diego, sales in May of resale condos were down 16.6 percent from May 2006 and down 53.5 percent from their peak pace in April 2004, according to DataQuick Information Systems. The median condo price in San Diego was off almost 4 percent from May 2006 to May 2007.

“The condo-hotel investment market has cooled off, just like the residential market has cooled off,” said Gary London, president of San Diego's London Group Realty Advisors, a real estate consulting and feasibility firm. “I haven't seen the concept be successful except in the very best of locations.”