With San Diego real estate moving in an upwardly direction over the past couple of months recent interest rates could slow home buying activity. Home buyers in San Diego have been, in some areas of the county, fighting over homes that come up for sale. Many San Diego home buyers have offers in on short sales and jump all over the bank owned REO foreclosures the day they hit the market. Unfortunately the bank owned REO’s already have offers on them the day they come up for sale and sometime even before they show up in the MLS.
This has many home buyers frustrated and wondering what they have to do to get a house or condo in today’s San Diego Real Estate Market. Another issue that has been waiting to rear its ugly head is interest rates. When interest rates rise home buyers see their purchasing power reduced. Keep in mind when interest rates go up the monthly payment for a homebuyer also goes up and sometimes more than what they are comfortable with. Many times the lender will have to reduce the purchase price of what the homebuyer can qualify for.
This scenario can also have a real negative effect on the real estate market in general. If a home buyer wanting to buy a home has had a certain purchase price and monthly payment in mind for a certain size and quality of home and then they’re told that they can’t buy the same home at the same monthly payment, many of them will decide not to buy. Some will wait for the homes that they were recently able to buy at a certain price range to come down into the loan amount of what the comfortable monthly payment is that they had already had their hearts set on. Some of them won’t be able to afford the same home they thought they could buy and won’t settle for less of a home now. These factors could show a decline in demand and then a decline in home prices. We’ll have to wait and see. Oh, and don’t forget about the foreclosures to keep the median home price in San Diego from gaining too much ground. There are a few years of that left.
If you need help buying a home or condo in the San Diego area make sure you contact us we’re your San Diego Realtor.
Ashlon Langley Writer and Director of The Car a 1970’s film starring James Brolin was interviewed on Shameful Cinema. I write many Blog posts about San Diego and San Diego Real Estate and after reading the Ashlon interview about this 1970 movie I thought I would deviate and write about something out of the ordinary. I like the 1970’s low budget movies without all of the special effects and outspoken actors of today’s Hollywood. Ashlon responding to a question from the interviewer Andy about the car design he said;
Ashlon: The under-cranking was reminiscent of the Adams Family and The Munsters television series, making that quality silly to me. However, the design is choice! I love that one of the confusing points for the cops in the movie is that they can’t tell what make or model the beast is. And… it has no tags! If only they could get a license plate, the bungling cops could stop all the mayhem, yeah right!
I wrote about this movie and this interview because things are also reminiscent of the 1970’s even though it’s 2009. We are now like in the early 70’s in a recession and inflation is due to rise. America has taken a hit in the pride department due to the media’s constant attack on the good things America stands for and good things the United States does for so many around the world. The 70’s brought about the 80’s and the economy started gaining ground again and Americans had a lot of good things to feel good about. Watch The Car if you can and read the Ashlon interview. It’s truly entertaining.
If you need help buying a home, condo, Bank Owned REO, Foreclosure or Short Sale in the San Diego area including Chula Vista make sure you contact us we’re your San Diego Realtor.
There are many foreclosures because of the Foreclosure Moratorium that are waiting to be put on the market for sale by banks, asset managers and REO agents. The foreclosure moratorium here in San Diego County as well as most areas of the United States has kept homeowners in their homes through the 2008 holidays and then extended into 2009. Now that we’re well into 2009 there are many wondering why hasn’t the banks released the foreclosures. Many of them are vacant and the buyers are looking for new foreclosures to buy. In fact there are so many buyers here in San Diego they are starting to get discouraged in some San Diego markets and price ranges on the lack of inventory. There are also multiple offers on many homes sometimes exceeding 30 offers.
Some say the foreclosures are being held off the market because the banks are waiting to see if the Obama administration will subsidize the banks for their toxic assets. If that’s the case one of two things will happen the government “our tax dollars and our kids and grandkids tax dollars” will bailout the banks once again and then the foreclosures will come onto the San Diego market or the administration wont bail them out and the foreclosures will come on the market. Either way if this is the hold up let’s make a decision already because my buyers are getting real tired of waiting.
The word here in San Diego is that there are buyers galore and not enough homes for sale in some areas and some price ranges. Mostly first time home buyer price ranges. The inventory is filled with REO’s that are heavily damaged and needing lots of work or short sales with many offers and slow moving negotiators at banks. I HOPE by summer the Obama administration will CHANGE what’s going on.
If you need help buying a home or condo in the San Diego area make sure you contact us we’re your San Diego Realtor.
This $10,000 tax credit in the state of California only applies to homes that have never been occupied and purchased between the dates of March 1, 2009 and March 1, 2010. The California home buyers must also reside in the home as their primary residence for at least 2 years from close of escrow.
A qualified home buyer is:
A taxpayer who purchases a single-family residence, whether detached or attached, that has never been occupied, that is purchased to be the principal residence of the taxpayer for a minimum of two years, and that is eligible for the homeowner’s exemption under California Revenue and Taxation Code Section 218.
A qualified principal residence – new home is:
-A qualified principal residence means a single-family residence, whether detached or attached, that has never been occupied and is purchased to be the principal residence of the taxpayer for a minimum of two years and is eligible for the property tax homeowner’s exemption.
- Types of residence: Any of the following can qualify if it is your principal residence and is subject to property tax, whether real or personal property: a single family residence, a condominium, a unit in a cooperative project, a houseboat, a manufactured home, or a mobile home.
- Owner-built property: A home constructed by an owner -taxpayer is not eligible for the New Home Credit because the home has not been “purchased.”
The State of California has set aside $100,000,000 in tax credits for new home buyers. This program is on a first come first serve basis and once the allocated new home tax credit money is gone it’s over. Make sure if your California real estate agent is unfamiliar with this tax credit you let them know about it. You should also contact your accountant. Some details include that the tax credit amount is equal to either five percent of the purchase price or $10,000, whichever is less. Taxpayers must apply the total tax credit in equal parts over 3 successive taxable years which is a maximum of $3,333 per year beginning with the taxable year of when the new home is purchased. This can also be used in addition to the $8,000 First Time Home Buyer Tax Credit in the Stimulus Package.
If you are interested in applying you will need to:
- Do the following within 7 days of close of escrow on your New California Home.
- The seller must complete Part I of Form 3528-A which is the Application for New Home Credit and certifying that the home has never been occupied as well as provide a copy to the buyer or escrow person.
- The buyer will complete Parts II & III of Form 3528-A.
- The escrow person on behalf of the seller and buyer will fax the completed Form 3528-A to FTB at 916.845.9754, and provide a copy to the buyer.
- Fax is the only delivery method that will be accepted and considered for credit allocation by FTB, as the date and time stamp on the fax will determine the order in which credits are allocated.
- Fax only one completed application per residence with all qualified buyers listed. Do not include information on nonqualified buyers. An incomplete application may delay or prevent credit allocation.
- Do not fax the application to FTB before escrow closes.
- Do not fax the application to FTB more than once. We will process the applications in the order received as quickly as possible.
- Escrow companies should only send one application per fax transmission.
- The buyer keeps a copy of the completed Form 3528-A for their records.
- The State of California Franchise Tax Board will have a fill able Form 3528-A online soon. In the meantime, if you fill out the form by hand, please print numbers as clearly and neatly as possible using CAPITAL LETTERS and staying between the lines. The faxes can be very hard to read.
San Diego - First Time Home Buyers Only – 8000 Dollars !
The $787,000,000,000 stimulus bill signed into law has some benefits for first time home buyers. In the bill signed by Obama there is an $8000 first time home buyer tax credit. This $8000 amount was sized down from $15000 in the original version of the stimulus package. Here in San Diego County California and rich foreclosure environments like Chula Vista in South County San Diego welcomes this first time home buyer $8,000 tax credit incentive.
Some of the details are that the home purchased must be the first time home buyers principal residence. There is a cap of $8,000 if the purchase price is higher than $800,000. A first time home buyer in San Diego or anywhere in the U.S. would be someone who has not owned a principal residence for 3 years. This will only apply to home buyers buying in 2009 so if you’re sitting on the fence of San Diego home buyers this could be the thing that gets you down off the fence and back in the market.
There are also income limits that state single buyers need a modified adjusted gross income of $75,000 or less to qualify for full credit and $150,000 for married couples. If buyers make more income than the amounts stated they could be eligible for reduced credits. Make sure you talk to your accountant about this. The $8000 tax credit is refundable. Buyers will have to own the home for at least 3 years if they want to capitalize fully on the tax incentive. The tax credit will have to be returned to the government if they sell early. There are situations that will be exceptions to this rule.
Make sure you contact professional tax consultants for full factual information on this $8,000 First Time Home Buyer Tax Credit.
If you need help buying a home or condo in the San Diego area make sure you contact us we’re your San Diego Realtor.
I spent some time today researching San Diego median home prices in 2009 compared to what they were in 2008. I found a great link that shows the median price from January 2008 to January 2009 and shows the difference in median prices in percentages. My theory based on real estate trends and experience in San Diego County has held true. I have been stressing the fact that many coastal areas will be hit the hardest despite what many so called experts have been saying. I have also said that areas like newer Chula Vista like EastLake, Rolling Hills Ranch, San Miguel Ranch and Otay Ranch have taken a huge hit early in this San Diego real estate downturn and won’t be hit nearly as bad as some of the areas that have a false sense of security. What I mean by false sense of security is that many coastal areas in San Diego just because they’re close to the beach are said to be by some real estate agents immune to a real estate downturn. Nonsense!
Some of these so called “untouchable to recession proof real estate areas” are North County Coastal and Coastal Central San Diego. Some of these areas are; Carlsbad, Encinitas, Oceanside, Solana Beach, Ocean Beach, Point Loma, and more. These areas have taken some of the biggest hits of all and in my opinion will continue to see slashed prices through 2009. These costal real estate areas should see bigger drops than the areas of Newer Chula Vista which has already taken its biggest drop early on.
The false sense of values in these coastal areas has allowed inventory to build and short sales and foreclosures to start their run up. These areas are and will be a buyer’s delight in 2009. I still think the newer areas of Chula Vista are closer to their bottom than many of the other areas in San Diego County. This means if you’re buying a home in these areas it could very well drop in value less than other areas of San Diego County. From January 2008 to January 2009 this was exactly what happened and is a good trend going into 2009 for home buyers.
Now the reality of some of the statistics in this San Diego Real Estate Median Home Price Chart is that the number of sales in some of the communities is so low that they are not that accurate. What is accurate is the overall median home prices by areas like; North County Coastal, East County, and South Bay San Diego. These are a culmination of the total sales in the areas and have a large enough number of closed sales to be accurate.
The chart tells me there has been a lower reduction in median home prices in South Bay San Diego OVER ALL OTHER AREAS of San Diego County. The bleeding is less in this area and some good signs of recovery and less hemorrhaging than other San Diego communities. Buyers and investors both are seeing the value in many South Bay San Diego Communities.
Checkout the San Diego Median Home Price Chart and make your own conclusions.
In 2009 San Diego Home Buyers are getting on board with the program. According to the National Association of Realtors many home buyers are out buying homes. Pending home sales has increased which is a great sign for the U.S. Real Estate Market. Pending home sales are measured by the Pending Home Sales Index which is a forward looking indicator based on purchase contracts signed in December. The index for December 2008 rose 6.3% over the November 2008 reading and this is 2.1% higher than December 2007. In the west we are seeing a17.5% higher number than the same month last year.
NAR states that the Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
NAR – National Association of Realtors stated that the improved affordability conditions such as low interest rates and cheaper homes were a factor to the increase in pending sales. Another great statistic for December 2008 was that the Housing Affordability Index rose to 10.9 %. NAR stated it was the highest on record. This is a very positive trend going into 2009.
Many areas of San Diego and Chula Vista have seen a jump in pending sales in early 2009. I have also been getting many more phone calls and emails from people wanting to buy a home in 2009. If you are ready to buy a home in 2009 please give us a call.
I’m Dawn Lewis and I’m a San Diego Realtor. You have just found the best San Diego Real Estate web site for searching for San Diego Real Estate. I hope it helps you with your San Diego home or condo search and answers questions you have about San Diego real estate. Please use the tools and features like the San Diego MLS with its great maps and community information.
My Experience:
Realtor® in San Diego Since 1989
SOLD well over 1,500 Homes
San Diego Top Producer
San Diego Relocation Expert
Top Real Estate Negotiator
San Diego New Home Sales Expert
San Diego REO Listing Agent
San Diego Foreclosure Expert
Short Sale and Foreclosure Expert
Winner of many Real Estate Awards in Sales and Customer Service
As you can see I have been a real estate agent in San Diego for quite some time. Please put my experience to work for you and give me a call today.
San Diego Real Estate Blog
Home buyers in San Diego are enjoying the low interest rates in 2009. Many home buyers have been sitting on the fence for quite some time and many San Diego home buyers are saying yes in 2009. During the first month of January in 2009 I have noticed an increase in buyers looking into buying a home in San Diego. With foreclosures and short sales dominating many of the areas and price ranges the pickings are ripe.
The interest rates being low allow a potential home buyer to have a lower monthly payment or buy a more expensive home. This basically means they can get more for their money or buy the same size home they have had their eye on and have a lower monthly house payment. I have worked with many San Diego first time home buyers and have found that they are amazed that they are able to buy a home at such an affordable price and such a low monthly payment. Just a couple of years ago many first time home buyers thought they were priced out of the San Diego Real Estate Market forever. Now many can buy and have a monthly payment for what they’re renting for.
If you’re interested in buying a San Diego home or condos contact us today.
Start your San Diego ForeclosureSearch today.
The San Diego Foreclosure Market is heating up. 2009 will be a great year to buy a foreclosure in San Diego. The foreclosures are on the rise and many of the homes you have been seeing as short sales in San Diego County will soon be foreclosures in San Diego County. I have a great San Diego Foreclosure Search Tool on my San Diego Real Estate Web Site and the pre-foreclosures are massing. Some of the lenders have postponed their foreclosure evictions until early 2009 and the inventory is building and should be robust by the summer of 2009.
When considering the purchase of a foreclosure you need an experienced REO Agent with an experienced REO Team. That’s where Dawn Lewis and her San Diego Foreclosure Team will help you find just the right REO or foreclosure for you. Offers written on REO homes and condos need to be packaged correctly for asset managers who handle the REO offers and we can package them up to make your offer stand out. When is comes time to buy a foreclosure in San Diego contact us. We’re #1 in San Diego REO’s and Foreclosures!
San Diego have been, in some areas of the county, fighting over homes that come up for sale. Many San Diego home buyers have offers in on short sales and jump all over the bank owned REO foreclosures the day they hit the market. Unfortunately the bank owned REO’s already have offers on them the day they come up for sale and sometime even before they show up in the MLS.
