San Diego Rock ‘N’ Roll Marathon

Just a heads up for all you San Diego beach goers and residents this weekend:

The San Diego Rock ‘N’ Roll Marathon is this Sunday June 1st. If you’re coming down to cheer on your favorite runner – RIGHT ON! If you’re coming down to head to the beaches make sure you plan ahead because of the traffic issues. I’ll post a map of the event below for planning purposes. Have a great weekend.

San Diego Mortgage Update

    Travis Houston has invited me to provide the West of the Five readers with weekly updates on mortgage rates for real estate purchases in San Diego.  Along with rate updates you will get links and commentary on changes that affect the loans available to buyers here in San Diego County.     

    This week’s news is that Fannie Mae is making an attempt to keep some of the loan business that’s going to FHA by loaning up to 97%.  This could be great news, however if the Mortgage Insurance companies don’t raise their limits from 95% to 97% as well the loans may never go into use.  I will keep you posted as things develop.  If this change goes into effect loans could be available as soon as June 1st.

Here are this weeks rates:

30yr Fixed Fully Amortized
1 point: 5.750%
2 points:  5.500%
15yr Fixed Fully Amortized
1 point: 5.625%
2 points: 5.375% 
5yr ARM Fully Amortized 
1 point: 5.375%
2 points: 5.125%

There are many other loan options available, but the fully amortized (paying principle and interest) loans offer the best deals in my opinion. Contact me with specific questions on your scenario. FHA and VA available if you qualify.

Broker ID# 01807122. Mortgage rates are specific to each individual’s financial scenario.  These estimates are based on scenario with a conforming loan amount, FICO of 770, 20% down, full documentation, 6 months reserves, owner occupied, 15 day lock. You are invited to contact me for your individual estimate at joyhouston@gmail.com.

Lower Your San Diego Real Estate Taxes – Deadline is May 30th

Happy Memorial Day San Diego,

With today being a county recorder holiday and official day off I am heading to the beach with my family and friends. It will be a good day of surfing and sun down at Law St. Before I take off for the rest of the day I want to remind you to lower your San Diego Real Estate property taxes. If you think the value of your property has dropped below your assessed value our County Assessor, Gregory Smith, has a proposition for you, Proposition 8 to be exact.

Here’s what you NEED TO KNOW about the benefits of going down in value for San Diego Real Estate. Between now and May 30th, 2008 you can apply for a Review of Assessment to lower your current property tax.

What’s a Review of Assessment you ask? Here’s the story straight from the government:

“Under State law, Proposition 8, a temporary reduction in assessed value can be made when the market value falls below the assessed value. Once reduced, the Assessor’s Office must then annually review the value of the property. When the property values increase, the assessed value will also be increased but no higher than the original assessed value (plus the annual CPI increase, not to exceed 2%, as required by Proposition 13).

If you need help getting the current value of your home or recent sales statistics to submit with the Prop 8 Review of Assessment we will put together the comparable sales packet just like an appraiser would for you.

Click the link below to download the Prop 8 Form:

Lower Your San Diego Real Estate Taxes – Prop 8

San Diego Real Estate Update – Buyer’s Market

San Diego real estate is in a buyer’s market. There is ample inventory to choose from especially in the lower price ranges that have been hit the hardest by the foreclosure freight train currently running its course throughout San Diego County. Short Sales and Bank Owned properties will most likely make up over half of all sales this year in San Diego.

See the list below for a snapshot of our West of the Five markets. Click the image to enlarge:

La Jolla Real Estate Market Update – 92037

Pacific Beach Real Estate Market Update

Point Loma Real Estate Market Update

Ocean Beach Real Estate Market Update

Clairemont Real Estate Market Update

Bay Park Real Estate Market Update

Top & Bottom 20 Real Estate Markets in the United States

The figures were released today by OFHEO Director James B. Lockhart, as part of the quarterly report analyzing housing price appreciation trends. “These substantial home price declines bring positive and negative news,” said Lockhart. “For homeowners and financial market observers, these declines spell further erosion in home equity levels and potentially more trouble for mortgage markets. To prospective home buyers who have been shut out of homeownership because of affordability constraints, these declines may be welcome news, as are continued low mortgage rates.”

San Diego, California Real Estate Ranks 266 out of 292 Nationally according to OFHEO.

How Do Your Measure Up?

San Diego Homeowners… How do you measure up as far a these 10 basic skills skills every real estate homeowner should have? Scoring works on a 1 to 10 point scale.

1. Replace a door lock.

Especially if you buy an existing house, with lots of old keys floating around, you might want to replace the exterior locks.

2. Change furnace and air conditioning filters.

Nothing difficult about this. Be sure you know where all the filters are – on air returns or at the air handler – and how to change them.

3. Learn the location of the main water cutoff.

It’s probably in a utility room or closet, but could be at a water tank or near the meter. You don’t want to go looking for it after a pipe bursts.

4. Find a stud in wall.

You’ll want to locate studs any time you’re hanging a heavy object, or installing molding or cabinets.

5. Hang items between studs.

For spaces between studs, you’ll want to use hollow-wall anchors to mount towel bars, drapery rods and the like on walls.

6. Hang a ceiling fan.

This is a popular upgrade and involves skills that you’ll use to replace light fixtures and receptacles.

7. Drive screws with a variable speed drill.

Sooner or later, you’ll need to learn to drive drywall screws with a variable speed drill.

8. Master a caulking gun.

Some say squeeze tubes are easier for do-it-yourselfers to master.

9. Banish wall stains by sealing them first.

Here’s another lesson from Homeowner 101: You can’t paint over crayon, ballpoint pen, grease splatters on the kitchen wall or water stains on the ceiling without the stains coming through. You must seal stains first.

10. Replace the flapper ball in a toilet.

Every homeowner deals with a toilet that leaks water from the tank to the bowl (and mysteriously flushes in the middle of the night).

So… how did you score?

Read more about each of these 10 Must Know Repairs for Every San Diego Homeowner.

10 Skills For Homeowners PDF

Great San Diego Real Estate Mortgage Rates

Have you found any properties that appeal to you on our San Diego MLS search? If so you may want to consider pricing out your favorites. Rates were phenomenal yesterday.

If you plan to hold your property indefinitely you’d do well with the 30year Fixed Fully Amortized loan.

Friday that loan was priced at:

6.00% with no points

5.75% for 1 point

5.50%. for 2 points.

These are seriously fabulous rates. Combine that with a great deal on a San Diego foreclosure property and you’ve got one smart investment.

Plan on making a shorter term investment while property values are low and selling in 5 years?

The 5 year ARM could work well for your scenario:

5.500% with zero points

5.125% for 1 point

4.750% for 2 points.

This is a simple courtesy update on today’s rates based on a scenario with 20% down, 720 or better FICO, full doc, owner occupied (DRE LIC#01807122). Same rates are available with less money down but you will have to pay mortgage insurance OR take a slightly higher rate to have the lender cover the mortgage insurance.

Rates are very attractive. Contact Joy with Fitzpatrik Capital directly for a personalized quote for your scenario at joy@westofthefive.com or by calling 619-508-2665.

The Housing Crisis Is Over

So what’s going to stop the housing decline? Very simply, the same thing that caused the bust: affordability.

Wow!!! According to the New York times article quoted, it’s official, the United States of America Real Estate debacle is over and April 2008 marks the bottom of the downturn. Now THAT is a bold statement. One I don’t agree with concerning San Diego real estate.

The next question is: Even if home sales pick up, how can home prices stop falling with so many houses vacant and unsold? The flip but true answer: because they always do.

Yes, I agree that home sales will pick up this year (Real Estate is experiencing a Nordsrom-style Half Yearly Sale) and yes property is way more affordable for certain market segments, especially first time home buyers. What I don’t agree with is that we have hit bottom. It will be nearly impossible to hit bottom for San Diego real estate prices with the insane amount of foreclosures and short sales going on at the moment. These distressed sales levy a heavy amount of downward price pressure on the typical retail market. My prediction is that we’ll shed two important things next year in 2009… the number of foreclosures and a president. At least one will be good for the state of the nation, hopefully two.

UCLA Anderson Forecast Outlook for San Diego County Real Estate

As I write this post the economists for the UCLA Anderson report are having breakfast in San Diego at the Marriott. My prediction for these economists is the only thing on the menu at this years breakfast… CROW.

Yes, the UCLA Anderson report authors will have to eat some crow in San Diego today. Last year they predicted San Diego would have a modest downturn in prices or remain relatively stable. What will be the outcome of this years predictions for America’s Finest City?

By 10:30am they will have finished giving the 2008 Outlook for San Diego Real Estate. Again, I can only imagine that once again they have said our local economy is NOT in a recession. I and a few others MAY disagree with them. What’s your opinion.

In an early release by Newswire this morning UCLA Anderson says,

“Our forecast for the next two years looks for real estate weakness to gain the upper hand in the next two quarters, leading to small losses in non-farm payroll employment, a modest spate of increased unemployment, and very weak growth in incomes and local output,” said Ryan Ratcliff, economist, UCLA Anderson Forecast and Alan Gin associate professor, University of San Diego, both authors of the San Diego Forecast report. “By the end of 2008, we should start to see the light at the end of the tunnel, as real estate job losses taper off and the housing market begins to stabilize.”

The economists also noted that we’ve seen somewhere between 7-16% price declines and that it will be mid 2009 before we start to see a Normal Housing Market.

The Crystal Ball Prediction for San Diego Real Estate

Wouldn’t it be great to get a look into the crystal ball of San Diego, California real estate and see what’s in store for house prices and the real estate market overall

Well… I’m sure I’m not the first to tell you there is no such thing as a crystal ball for real estate. What I am here to tell you is that the closest thing to a crystal ball I’ve seen lately is our San Diego County Tax Assessor, Gregory Smith. Gregory has been our real estate Assessor/Recorder/Clerk for the past 25 years and spoke today about our current San Diego real estate market.  The following comments are my notes from his presentation:

YES, California and San Diego are in a recession.

We are at or near the bottom of the market currently. Prices should level off in 2008. One good sign is that there were over 3000 recorded documents at the County Recorder’s Office last month – the first time it’s been over 3000 in quite some time.

What we need for a recovery concerning San Diego real estate comes down to 3 things:

1. Interest rates need to get back to the Mid-5% range. People seem to think that below 6% is the magic number for interest rates to be considered good.

2. A full implementation of FHA needs to be embraced. Jumbos have to come back in line with conforming loan rates.

3. Foreclosure inventory needs to go down. Downtown has roughly 2000 units for sale with 2500 more coming online this year. The beachareas have the least affected by the foreclosure market. By the end of the year 2008 most of the foreclosures will be off the market.

The County Assessor’s Office is getting about 300-400 submissions for Proposition 8 a day. The cut off day is the end of this month. It’s great for people who have a lower property value in comparision with their appraised value.

2008 is the bottom of the market. Survive 2008 and 2009 and 2010 will be better for the real estate industry.

This is the best time to buy property. Even if you have to sell your property now and buy again in San Diego it will be better to buy now than wait. You’ll save on property taxes in the long run.

Did you read that last line?

The very wise and always to the point San Diego County Tax Assessor, Gregory Smith just said that NOW IS THE TIME TO BUY REAL ESTATE. He’s advising us to save on taxes in the long run by purchasing a move-up property now rather than waiting.

As usual, I’d love to hear your thoughts on this matter and the preceding comments.