Frequently Asked Questions
About the $8,000 First-Time Home Buyer Tax Credit
Frequently Asked Questions
About the $6,500 Move-Up/Repeat Home Buyer Tax Credit
Federal Homebuyer Tax Credit FAQ
February 21st, 2010Update on CA Foreclosure Activity
February 17th, 2010From RealtyTrac:
Foreclosure activity in California decreased 10.77 percent in January compared with December, with one in every 187 housing units receiving a foreclosure filing, according to the report. Six California cities registered foreclosure rates among the top 10 in the nation: Modesto, one in every 107 housing units; Stockton, one in 107; Riverside-San Bernardino-Ontario, one in 109; Merced, one in 109; Vallejo-Fairfield, one in 112; and Bakersfield, one in 118.
What’s Selling in San Diego?
February 8th, 2010It’s the lower end of our price range that’s selling.
Check out the chart below and you’ll see that over 60% of the single family detached homes that sold in San Diego last year sold for under $400,000.
This means that if you are a buyer looking for deal in the under $400,000 range, you can expect competition. And if you are a seller in this market, you will do best if your property is in this lower price range.
All in all, it’s still true that the really low-priced and the very well cared for, super-cute properties are the most popular with buyers.
This lovely chart is compliments Charles Hoskowicz, my co-worker.
San Diego 2009 Single Family Detached Property Sold Prices
Fewer Foreclosures - More Short Sales
January 14th, 2010Lately we’ve seen fewer bank-owned properties hit the market while there has been in increase of listed short sales.
We’ve all been hearing about a “shadow inventory” of foreclosures - a supposed chunk of bank-owned homes, waiting to be released in one big barrage. At this point, no sign of it. Some think it’s still coming. Some don’t believe it exists. We will see.
So for now with the onslaught of short sales, what does this mean to you?
If you are upside-down on your mortgage and you have been unable to get a loan modification, chances are higher now than last year that your bank(s) will approve a short sale that will let you sell and help you to avoid foreclosure.
If you are a conventional seller, selling with equity in your home, you will still need to prepare to compete with lower priced homes as short sales are tending to sell very low.
If you are a buyer, looking for a great deal, you may find one in a short sale. Just be sure to bring loads of patience with you as look for a home. Some short sales are starting to be processed faster, but many (including properties with B of A/Countrywide loans) are taking up to five or six months to process.
I’ve said that I believe 2010 will be the year of the short sale. More short sales are being approved and making it to actually close, but it is still taking most banks far too long. Buyers, sellers and the entire real estate market need Bank of America to follow Well Fargo/Wachovia’s lead and gets moving on their short sales!
CA Median price up from last year
December 24th, 2009California median price rises 5.8 percent in November
Home sales in California increased 4.7 percent in November compared with the same period a year ago, while the median price of an existing home rose 5.8 percent, according to a report released yesterday by C.A.R.
The median price of an existing, single-family detached home in California during November 2009 was $304,520, a 5.8 percent increase from the revised $287,880 median for November 2008, C.A.R. reported. The November 2009 median price rose 2.4 percent compared with October’s $297,500 median price.
The median home price in California has risen nine consecutive months in month-to-month comparisons, but November marked the first time California’s median home price has risen in year-to-year comparisons since August 2007.
From C.A.R. Newsline
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
2010: The year of the Short Sale
December 16th, 2009Look for next year in real estate to be the year of the short sale.
Banks are being encouraged by the government to do short sales rather than foreclose. This is good. Short sales are better for neighborhoods than foreclosures.
Even though banks are leaning towards short sales now, they are still very overloaded with short sale files and are taking way too long to process them. The end result is the market is loaded with short sale listings that can take four, five or six months to process and that may or may not close. This leaves sellers in the stressful position of not knowing what is going to happen with their financial situation and buyers wondering whether they are actually going to close escrow or should they continue shopping for a suitable property.
Some banks are working to pre-approve short sales before they actually hit the market and these banks say they can close approved short sales in about the same amount of time as a conventional sale. This is good news and I’m looking forward to actually coming across one of these transactions.
So in 2010, the year of the short sale, lets hope that banks devote even more resources to making the short sale process faster and easier on sellers, buyers and everyone involved in the transactions.
Good economic news to start your week right
November 9th, 2009This week is starting out with good news on the economic front. Happy Monday.
Today’s Economic Update comes courtesy of Eric Otfinoski, Senior Loan Officer at Prospect Mortgage. Let me know if you would like to talk with Eric about a home loan or give him a call at (619) 442-4725.
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Last Week in the News - Economic Update
The Institute for Supply Management reported the monthly index of manufacturing activity rose to 55.7 in October from 52.6 in September. It was the highest reading since April 2006 and well above the economic forecast of 53. A reading above 50 signals expansion.
The Commerce Department reported total construction spending rose 0.8% in September. Economists had expected a decrease of 0.2%. Private residential activity rose 3.9%, posting its best showing since July 2003.
The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, rose 6.1% to 110.1 in September, following a 6.4% increase in August. It was the eighth consecutive monthly increase and the highest reading since December 2006.
The Commerce Department reported factory orders rose 0.9% in September. The report reflected increased demand for both durable goods and non-durable goods. Bookings for heavy machinery jumped 7.9%, the largest gain since March 2008.
The U.S. non-manufacturing sector grew for a second consecutive month in October. The Institute for Supply Management reported the monthly index of non-manufacturing activity was 50.6 in October, slightly down from 50.9 in September. A reading above 50 signals expansion.
The Labor Department said that productivity jumped at an annual rate of 9.5% in the third quarter of 2009. The increase was the biggest quarterly gain since a 9.7% increase in the third quarter of 2003.
Initial claims for unemployment benefits fell by 20,000 to 512,000 in the week ending October 31. The figure was lower than the 523,000 that economists had forecast. Continuing claims for the week ending October 24 fell by 68,000 to 5.75 million.
Looks like hombuyer tax credit will be extended and expanded.
November 5th, 2009Looks like the homebuyer tax credit will be extended and expanded. Good news on the housing recovery front.
Currently there is a federal $8,000 tax credit available to qualifying first-time home buyers. That credit is set to expire on Nov 30, 2009. Due to the popularity of the program and the belief that it has helped with a housing recovery, the House and the Senate have voted to extend the credit expiration date and to include existing homeowners.
The bill is headed to President Obama for his signature. If the legislation is passed in its current form, the credit will be extended to April 2010. Qualifying first-time home buyers will continue to be eligible for a credit of up to $8,000, while existing homeowners will be eligible for a reduced credit of up to $6,500. To qualify for the $6,500 credit, existing homeowners must have lived in their current residences for at least five years. (I will get more info on the existing homeowner credit thing.) Also the qualifying income limits have been increased.
This credit helps homebuyers afford to make the move and helps sellers or anyone who is waiting for the market to recover. So far more than 1.4 million homebuyers have taken advantage of this federal credit. Once passed, this bill will help many more across our nation.
Excellent!
If you want to buy now and take advantage of this credit, give me a call. I’ll be happy to help you find your San Diego home.
Thanks,
Margot
619-825-5086
SD Home prices per square foot. Now and a year ago.
October 27th, 2009Are home prices improving in your neighborhood? Check out these charts for median prices per square foot by zip code.
Central San Diego
North County Inland/Coast
East County/South Bay
Charts are compliments of Mary Ann Pearson from Chicago Title.
Whether you want to buy, sell or are just wondering about the value of your home, call or email me for a more specific analysis of your property or your area of interest.
619-825-5086
Last week’s economic indicators lookin’ good
October 12th, 2009Heidi Odish, a Metro San Diego Mortgage loan officer, helps to educate her clients with an Economic Update newsletter.
Below is her latest newsletter, that I want to share with you because it’s all good news.
Please let me know if you would like to receive this newsletter yourself.
Economic Update
Courtesy Heidi Odish, Prospect Mortgage LLC
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The U.S. non-manufacturing sector grew for the first time since August 2008. The Institute for Supply Management reported the monthly index of non-manufacturing activity rose to 50.9 in September from 48.4 in August. A reading above 50 signals expansion. Big gains were made in new orders, up more than four points to 54.2; backlog of orders, up 10.5 points to 51.5; and productivity, up nearly four points to 55.1.
According to the ICSC-Goldman Sachs index, retail sales rose 0.3% in the week ending October 3. On a year-over-year basis, retailers saw sales increase by 1%, the second-best showing in a year.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending October 2 rose 16.4% to 756.3, the highest level since May. Purchase volume rose 13.2% to 306.1. Refinancing applications increased 18.2% to 3,377.1.
According to the Federal Reserve, consumer credit debt fell for the seventh straight month in August by $12 billion, an annual rate of 5.8%. Economists had forecast consumer debt would drop $10 billion. Total consumer credit debt in August was $2.46 trillion.
Initial claims for unemployment benefits fell by 33,000 to 521,000 in the week ending October 3. The figure was lower than the 540,000 that economists had forecast. The number of people continuing to claim jobless benefits in the week ending September 26 fell by 72,000 to 6.04 million.
The Commerce Department said wholesalers reduced their inventories by 1.3% in August, following a revised 1.6% drop in July. It was the 12th straight monthly decline. Meanwhile, sales at the wholesale level rose 1% in August, the largest increase since June 2008.
