San Diego Real Estate Market Update

Homes in La Jolla

2011-01-23T12:34:00.001-08:00

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Sunday morning in la Jolla. Middle of winter

2011-01-23T12:33:00.001-08:00

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One of my favorite places coming to Del Mar Highlands center :))))- Rina Podolsky Carmel Valley Real Estate-

2010-10-28T15:42:00.001-07:00

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Even with this weather, meditating @ the beach!!!

2010-10-18T16:15:00.001-07:00

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New Blog Post

2010-10-06T16:45:00.001-07:00

http://wp.me/pBTSP-1h

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Play ball!!!

2010-09-26T13:23:00.001-07:00

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To the SD peeps. Can u name the location of this home?

2010-09-22T15:22:00.001-07:00

www. SDExclusiveproperties.com
San Diego Real Estate

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The is something very calming of an overcast beach...

2010-09-17T11:55:00.001-07:00

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@Poseidon, enjoying a mojito, the view and some great company :)

2010-09-16T18:45:00.001-07:00

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Beautiful day for a pool inspection :)

2010-08-11T10:35:00.001-07:00

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Now THIS is more like it! San Diego rocks!!!

2010-07-31T18:59:00.001-07:00

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http://mysandiegorealtor.wordpress.com/2010/07/10/you-are-ready-to-buy-a-home-but-you-offers-keep-getting-rejectedd/

2010-07-10T15:18:00.001-07:00

When you decided it was time to buy a home, if you are like most people, you felt some apprehension and a lot of excitement. So you started going to open houses, along the way you might have gotten a hold of a Real Estate agent to help you along the process, you got pre-approved for a loan, you kept looking at houses, you searched online, probably every other day if not daily,twice a day, maybe three times a day, until one day you finally take the big step…You write up an offer!

You sign it and wait…and wait….and then, the news comes….It was not accepted, someone else’s was chosen. WHAT???? How can that be you ask yourself? The one house that is getting an offer is rejecting mine in this down market? Turns out, that it got three offers on the first week and one was full price so they did not choose yours that was way lower. So…your search continues because you know you are going to find a house.

Weekend of open houses, more appointments during the week, more homes, one that has a funky layout, one that does not have doors in any bedroom, one more that has apparently been lived in by the Adams Family, now you start comparing them all to the one that got away, and you are not liking any of them. You decide to take a break, so you go away for the weekend. During your relaxing get away you think about it and you decide to commit yourself to BUYING a house. So you come back renewed and refreshed and determined to start writing up offers right and left hoping that one sticks, one has to work!!!

Armed with a pen and lower expectations you go out to…see some more houses, many of which you have already seen but are giving them a second chance. And since you mean business you start writing up more offers, however since you feel you are definitely compromising on what you are buying you don’t feel you have to pay close to market price so you start writing lower offers, if one works for the amount that you are offering, you will handle living in that funky layout for a while.

You look, you, sign, you send, you wait…rejected, rejected, rejected, accepted….WHAT???? the funky layout one got accepted??? you open escrow and you are not excited, you are nervous, you don’t even remember the home that well, you have seen so many that even when you saw this one 4 times you can’t remember it now. So you ask to see it one more time.

You walk in this home that is soon to be yours, you start looking at it with different eyes, you had not noticed that the laundry is directly next to the living room, that the ceiling in the master bedroom is 2 feet lower than in the rest of the house, that the kitchen only has two cabinets and no pantry.During the inspections some details come to light and that is just more than you can bear. This, is NOT your house, you cancel escrow.

You take another break, a longer one in this occasion, after a month or so, you realize, your time frame to move is coming up, so you have to get back in the game. This time you are dreading it. How did you get to this point? shouldn’t you be excited? you are buying your home!!! You talk yourself out of your own head drama, and start the process one more time, hoping that this time things will work out because now you have the added factor of working against the clock. Question is, what are you going to do different this time? How will you get your offers accepted? or is that really the key question?

Of course this is an exaggeration, or is it?

Even though it is not a real case in particular, it is very real. Selecting a home to buy and buying it is a major decision in life, I don’t care if it is your first one or fifth one, it is something that will take a big toll on the way you will be living in the near future. So it is understandable that there will be some stress involved, which is why it is very important to have a plan, before you even begin looking at homes. An important part of this plan, should be to have a team of experts guiding you, that are capable of reading not only the local market, but specific situations on a case by case, and prepare you to what to expect along the process

In your team you need:

1.-A full time real estate agent that knows the area you are looking at but is also willing and able to research other areas that might work for you and that is getting trained and up to date with the constant changes in Today’s real estate market and the different ways that each of the distinct types of listings work, for example, he should know the best way to negotiate with a bank, the best way to write up and submit an offer for a short sale, even how to handle a regular sale, imagine that!.

2.-A full time mortgage broker or lender, that is reputable and up to date with the latest changes in rules and regulations in the lending arena. There have been many changes in the last months and some of this changes are very important and can throw off an entire escrow because there are issues of timelines, the margin for error here have become minimal so it is very important that you not only select the person who brings you the best rate, but the one that will be able to handle the transaction and ultimately close your escrow.

3.- Other professionals: Which might include ,A Financial advisor, CPA, Real Estate Lawyer and even a contractor. Not everyone needs all of this professionals, however in most cases at one point you will need the advice of one or the other and it is best to have them in place from the start so that when you are ready to move on a home, you can access them and get the answers you need as quickly as possible. Which of these you will need depends on you, everyone does things differently.

Now that you have assembled your team, the next step is to get pre-approved. Notice that you have not started to look at homes yet, it is smarter to know with certainty how much home you can afford, before you start looking. You do not want to look at homes in the wrong range because if you qualify for less the step down will be hard to swallow, and can hurt your chances of liking the homes you will look at.

In the meantime with your agent, you can start discussing parameters, he will have a lot of questions for you. Make a list of what you like in a home, what you NEED in a home, what you dislike and put them in order of non-negotiables down to acceptable. Understand that there is no perfect home, not even if you built it yourself. So it will require some compromises on your part.

Now is the time to understand what you are looking for, and make a strategic plan accordingly. What are you looking for? Are you buying a deal or a home? I am not saying that you should pay asking price on the first house you see.That would be plain stupid, but understand that everyone dreams of buying a great home at an amazing price, however you have to be realistic or else you will get caught up in the trap that I presented before. Know that if what you are looking for is a deal, your search will require you to be more able to compromise on other things, you will need to have more time to find it, be realistic and knowledgable about the specific market where you are looking, and be clear. What does a deal look like in this area in this market? understand that in this case you will get rejected many times, however you are going about this as a business, you are looking for a deal.

If you are looking for a home, that again does not mean you have to overpay, but understand that if you want a home, with all the bells and whistles, with privacy and a big yard, it will be more sought after and you will have more competition, those things come at a premium, but remember that those things have value so that when you are ready to sell, you also get a premium for them. If you are willing to compromise on some of the most sought after elements you have a stronger position to negotiate. And yes, you will negotiate, and to negotiate you need to have clarity in the following:

1)What is the motivation behind the sale.

2)How badly do I want this house.

3)What are the properties weaknesses.

4)What can I offer to make myself a stronger candidate.

And as I had said previously you have to understand the market, its prices, etc, Be knowledgeable be smart and be quick. In other words, be prepared.

You can not negotiate with an un-motivated seller. Move on. If someone does not want to sell, or if they don’t need to sell, they will not negotiate in the price they have set as a minimum in their mind.

Now here is the big secret…ready? Listen to your team. I dont mean hear them out, I mean listen carefully and communicate back to them clearly, what your expectations are, give them constant feedback. Be ready to change your point of view as things progress but communicate any changes to your team so that they can adjust the search and the plan accordingly. Understand that they are on your side and they know what they are doing, they have done it many times before. They will be strong at reading the situation, telling you when something is already a deal at the listed price, when you are looking at properties they have a trained eye, listen to what they say, I can assure you in the story that I used to open this post, the agent must have pointed out to the buyer some of the problems with the funky layout home, but sometimes out of desperation we don’t listen, and later question why we were not told.

Also, there are different and creative things that your team can come up with, but you have to understand each one has implications, be open to them but ask questions.

Now, knowing all of this, the question is are you ready to buy a home? I mean, are you really READY to go out and BUY a home?

If you need any help or advise on buying a new home you can contact the author at info@SDExclusiveproperties.com or if you want to search the San Diego area market you can do so at www.SDExclusiveproperties.com

Filed under: Buying a home, Fist Time Homebuyers, Foreclosures, Getting Offers Accepted, San Diego Real Estate | Tagged: Del mar homes, carmel valley real estate, carmel valley short sales, del mar real estate, Rancho Santa Fe Real Estate, Rancho Santa Fe Bank Owned Homes for sale, car, Del Mar Short Sales, Del Mar Foreclosures, Rancho Santa Fe Homes, Rancho Santa Fe Foreclosures, Rancho Santa Fe Short Sales, Getting offers accepted, Secrets to writing up an offer, Carmel Valley Bank Owned Homes, Sergio and Rina Real estate proffessionals, SanDiegoExclusiveProperties.com

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Even the fair in San Diego has ocean views & Palm trees :)

2010-07-03T00:51:00.001-07:00

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San Diego Fair 2010.

2010-07-03T00:49:00.001-07:00

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Beautiful night with friends by the fire...we really live in Paradise!

2010-06-16T22:23:00.001-07:00

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Ommmm........

2010-05-23T13:33:00.001-07:00

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I opened my eyes and I saw things were as they should. This is magnificent!

2010-05-11T13:58:00.001-07:00

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Feeling better already :)

2010-05-11T13:30:00.001-07:00

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This could be the view from your master bedroom

2010-04-30T13:38:00.001-07:00

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The best places you find by pure chance....

2010-04-17T16:35:00.001-07:00

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LC Ranch

2010-04-17T16:34:00.001-07:00

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Found this amazing place by chance

2010-04-17T16:32:00.001-07:00

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Having my morning coffee @ Del Mar Plaza!

2010-04-11T10:47:00.001-07:00

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This is the beginning of a beautiful day...

2010-04-09T07:04:00.001-07:00

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Good morning :)

2010-04-08T09:49:00.001-07:00

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Ahhhh....Now I can unwind. I like this place

2010-04-07T14:48:00.001-07:00

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http://blip.fm/bright_side

2010-03-22T19:58:00.001-07:00

bright_side is a Blip.fm DJ.
On Blip.fm you create your own internet radio station and listen to free music played by you and your friends. Join for free to start sharing music!

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One of my favorite songs...just had to share it :) Hope you enjoy it!!!

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2010-03-22T10:20:00.001-07:00

I want to share with you some information that came to me from Chris Sorensen and the HELP project.

If you are in a situation where you are considering; A Short Sale, Loan Modification, Letting your property go to Foreclosure or even Bankruptcy, there are Several Tax implications to consider before taking any of the before mentioned routes. I would really hate for you to be in a position where after the fact you learn that you not only lost your home, but now owe money to the IRS.

Here is the information that Chris suggest you take to your CPA so he can help you understand where you and your particular situation would stand.

DEBT CANCELLATION OVERVIEW
Prepared by Jerrie Muir, IRS Tax Consultant
March 5, 2010

I. General Rule. When a taxpayer borrows money from a commercial lender and lender later cancels or forgives the debt, the cancelled amount may have to be included in income.

II. Common Exceptions:

Qualified Principal Residence Indebtedness- IRC Section 108(a)(1)(E)
Bankruptcy- IRC Section 108(a)(2)(A)
Insolvency- IRC Section 108(a)(1)(B)
Certain Farm Debts
Non-Recourse Loans

III. Mortgage Forgiveness Debt Relief Act of 2007 (Public Law 110-142)
a. Generally allows taxpayers to EXCLUDE from income debts forgiven or cancelled which were used to buy, built, or substantially improve a home OR refinance debt used for one of those purposes
• Debt must be secured by a home
o Principal residence defined under Treas. Reg 1.121-1(b)(1)
• Maximum amount treated as Qualified Principal Residence Indebtedness is $2 Million ($ 1 Million for taxpayers who file a Married Filing Separate Tax Return
• Applies to 2007, 2008, and 2009 Tax Returns
• Forgiven debt excluded from income is reported by taxpayer on IRS Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Adjustment), which is attached to the filed tax return
• Forgiven debt of a taxpayer is reported by the lender on Form 1099-C, Cancellation of Debt
• Taxpayer can also exclude debt if they are insolvent or debts are discharged through Title 11 Bankruptcy
o Taxpayer may make an election to reduce the basis of depreciable property by the excluded income rather than the other tax attributes- IRC Section 1082
• Forgiveness of a Non-Recourse Loan, which is a loan where the lender can ONLY repossess the property and not pursue you personally- Cancellation of this type of debt is NOT TAXABLE
• Mortgage Forgiveness Debt Relief Act does NOT apply to debt forgiven on second homes, rental property, business property, credit cards, or car loan
• Capital Loss on the sale of a primary residence is NOT deductible on a tax return

• EXAMPLE:

2002
Home Purchase $435K
1st Mortgage $420K
Down payment $ 15K

2003
2nd Mortgage obtained to build $ 30K
to build additional room

2006
1st and 2nd Mortgages $440K (Loan Balances)
(Before Refinance)
Fair Market Value of Home $500K
Refinance Amount $475K (Cash out of 35K)

2008
1st Mortgage $475K (Loan Balance)
Fair Market Value of Home $425K
Loan Modification Amount $ 40K

• Taxpayer has 40K in cancelled debt
• 35K Non-Qualified Principal Residence Indebtedness is reported on Form 1040, Line 21, as Other Income
• 5K Qualified Principal Residence Indebtedness is reported on Form 982

IV. The Emergency Economic Stabilization Act of 2008 (Public Law 110-343)
• Extends the mortgage debt relief on Qualified Principal Residence Indebtedness for tax years 2010, 2011, and 2012

V. Recourse Debt- When the amount of debt discharged exceeds
Fair Market Value of property
a. Difference is cancellation of debt and considered income
i. Treas. Reg. 1.1001-2(c), Ex. 8; IRS Revenue Ruling 90-16

VI. Non-Recourse Debt-
b. Foreclosure/Deed of In Lieu of Foreclosure treated as deemed sale with proceeds equal to the amount of nonrecourse debt
c. Abandonment of real property that has nonrecourse financing treated as deemed sale
d. NO cancellation of debt when treating the nonrecourse debt principal as the amount realized from a deemed sale

Please seek good counsel with an acredited CPA and depending on the case perhaps you will need a lawyers advice as well.

Please be wary of companies charging up front fees for any help with one of the situations mentioned before, it is many times not legal and in most cases a bad idea.

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I have just added a new post to my blog. If you are considering a Short Sale, Foreclosure, Bankruptcy or Loan Modification...here is a quick thought before you make a decision.

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Stop by our Open House from 1 to 4. Detached home in Carmel Valley (San Diego) Under $650,000. Come see

2010-03-20T10:42:00.001-07:00

11205-3 Carmel Creek Rd

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Just hanging out on a sunday afternoon...not a bad place to live :)

2010-03-14T22:59:00.001-07:00

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Just follow the signs and you will get to...a great deal!!! (& me :) )

2010-03-13T13:19:00.001-08:00

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Beautiful moon! I feel magic all around ...

2010-02-28T20:17:00.001-08:00

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Morning after the rain, it all looks beautiful!

2010-02-28T09:15:00.001-08:00

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Welcome Home....this is La Jolla Califonia!

2010-02-20T13:40:00.001-08:00

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IMG00078-20100115-1116.jpg

2010-01-15T11:39:00.001-08:00

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2009-11-19T20:11:00.000-08:00

I have driven up and down the stretch of Hwy 101 that extends from Carmel Valley Road up to Via de La Valle hundreds of times, it is one of my favorite areas of San Diego yet I had never questioned how it all came to be. This piece of heaven also called Del Mar California has the feel of a European medieval town, with the feel of a small community and ocean views that never end.So how did it all get started?

I found some information on Del Mar 's history through it's own historical society. According to documents found the date when you could say everything was set in motion was on August 14 1882, the day the railroad tracks were laid along this stretch of coastline in the effort of uniting San Diego and San Bernardino.

The man in charge of overseeing the project was Theodor M. Loop an engineer and contractor. He set up camp in a beautiful parcel of land that he referred to as "the most attractive place on the entire coast.". He set up a tent city and built a house for himself and his family. It was his wife Emma who named it, Ella, called it "Del Mar" - words taken from a popular poem, The Fight on Paseo Del Mar.

Loop met a gentleman named "Colonel" Jacob Taylor who suggested they develop the area and build a town here. It was 1885 when he purchased 338.11 acres at the northern end of the mesa from homesteader Enoch Talbert. It is said that he paid $1,000. And at this Del Mar was officially founded.
Taylor had a very clear picture in his mind of what the area was to become. His plan was for this to be a playground for the well to do, a seaside resort for the elite. The visionary designed and built a town whose focal point was Casa del Mar, a hotel-resort. Other town attractions included a natatorium, dancing pavilions, and a bathing pool extending from the beach out into the sea.In 1889 tragedy struck and the main attraction, the hotel, burnt down to the ground and so the town was left without it's focal point. This together with the struggling economy left the small town in a dormant state for at least 15 years.

It was until the beginning of the 1900 when The South Coast Land Company hired a prominent Los Angeles architect, John C. Austin, to draw plans for a new hotel, the Hotel Del Mar. The hotel opened in 1910, and fulfilling the original plans for the area, the elegant hotel served as a magnet for Hollywood stars of the silent film days.

From 1912 till 1920 beautiful new homes began to appear around the new town and many of them soon became landmarks. Construction was halted in the 1930's

Still it was during this time in 1933 when the search for a site to host the San Diego County Fair began. Ed Fletcher suggested that the 184 acre site in the San Dieguito Valley - just off the main highways and the Santa Fe Road - would be easily accessible and a perfect setting for a fairground.
It was on October 8, 1936 when the fair opened with an attendance of fifty thousand guests.

Bing Crosby made the Del Mar Turf Club a reality and Pat O'Brien became the Vice President. The Race track opened on July 3, 1937,and with it a new era began in Del Mar. The track was hailed as Bing's Baby or Movieland's Own Track. In 1938, Bing recorded the song that would open and close everyday of racing since those early days - Where the Turf Meets the Surf (click to listen to the song).

The race track brought A list celebrities and personalities every year, and many of them decided to set up homes in Del Mar, among them Lucy and Desi, Burt Bacharach and many others.

However during World war II the race track had to be closed and converted into a bomber tail assembly production facility until 1945 when racing returned to the the track.

The city of Del Mar was incorporated until 1959. During the following two decades everything was mostly quiet in the area. There was a growing movement of people in Del Mar whose goal was to beautify and maintain the open space, and it was at this time when the gorgeous Seagrove park with its grassy are overlooking the ocean was created.

Today the centerpieces of new Del Mar are L'Auberge - a beautiful hotel designed with the Stratford Inn in mind - and just recently renovated. And the elegant shops and boutiques of the picturesque seaside shopping center, Del Mar Plaza. Its selection of restaurants provides great taste, mood, and rave reviews.

Del Mar has maintained it's picturesque main street, it's small upscale town ambiance, with beautiful homes each one unique and different from the rest, some landmarks in their own right some brand new.

Today Del Mar is 92014 zip code. According to the Multiple Listing Service information the area has:
142 Active Listings out of which 114 are detached and 34 are attached
7 Contingent listings
32 Pending
15 Sales in the past 30 days
This gives it a 9.47 month inventory of homes.
60 properties on the counties list of foreclosure and preforeclosure.
And according to the statistics of the sales the averages are:
A.Selling Price-$1,640,770
A.Price per Square Foot $740.52
A.Days on Market 108
A. percentage of sale to asking price 94%

The School District includes the Del Mar Union School District which is one of the highest ranking school districts in all of San Diego. It has 8 Elementary schools and 2 middle schools and 2 High Schools.

For more detailed information you can visit my web site http://www.sandiegoexclusiveproperties.com/ or contact me by:
email info@sdexclusiveproperties
twitter www.twitter.com/rinapodolsky
facebook http://www.facebook.com/group.php?gid=123662939207&ref=ts

You can even search properties in Del Mar just by going to our web site

All the information in this blog has not been checked, it is believed accurate but not guaranteed.

History of La Jolla California

2009-11-09T13:18:00.000-08:00

EARLY HISTORY

La Jolla is believed to have been the home of Native Americans and some artifacts have been found, however there has been no clear consensus as to who they where and what happened to them.

The first written records that have been found according tho the "La Jolla Historical Society" are those that appeared in all land grant and mission records since 1928 and in scattered documents at least back to 1870 when they appeared spelled "L-a-J-o-y-a".

That spelling is consistent with the Spanish spelling of the word "The Jewell" although some argue that the name actually comes from the Native American term Woholle that means, hole in the mountain.

The reality is, no matter where the name actually originated it is assumed to be the first option because La Jolla is actually considered to be a Jewell. With it's breathtaking views of the ocean and the mansions lining it's streets, this is a place that exudes refinement.

Incorporated in 1850, the first lots of land sold in La Jolla in 1869, they were purchased by two brothers, the Sizer lots were sold for $1.25 per ACRE and each purchase a 80 acre lot in what is now downtown La Jolla. However it was Frank Terrill Bostford who first started auctioning off pieces of land in the area which earned him the title of "Father of La Jolla"

By 1900 it had 350 residents and by the end of the first world war there about 4000. At this time in history the basis of the economy for the area was tourism. The architecture slowly shifted its design from the initial cottage style to the Spanish mission style of construction.
In 1929 with the crash of the stock Market, the area was affected along with the rest of the country, not many houses were built in the 10 year period following the crash and it was until the second world war that the area had another growing spur, after the end of the war many people came back to call this area home and they began developing the adjacent hills into subdivisions. By 1960 17,000 people called La Jolla home and Today there are well over 40,000 residents.

Although la Jolla is most famous for its natural beauty and terrain, it is also well known for being the place where Charles Lindbergh learned to fly gliders, he flew from the top of Mt. Soledad. Today there are no gliders flying out of that area but there is a very well known glide port in the Torrey Pines area, just above the Scripps institute of oceanography, there you can watch this gliders take off almost every day.
Another well known attraction in La Jolla is the 7 caves at La Jolla Cove, only 1 of this caves is accessible from any point other than by sea, it is a destination for scuba divers and Kayaks which are very common in the area.

There is also the La Valencia Hotel which is a destination hotel visited by many stars back in the golden era of cinema and even today. It is located adjacent to the La Jolla Cove park and it has some of the most amazing vies any hotel has in the area.

La Jolla has also been the home for many famous artist, writers, even a Nobel Laureate and many sport and movie stars. But one of the most famous residents would be Theodore Geisel also known as Dr. Seuss. Today you can still walk down prospect street with its many galleries and stores and find many of his paintings and artwork for sale in the area.

Today, the citizens of La Jolla are among the most engaged in the world of charity, it is a society that is constantly supporting all kinds of causes and it has become a standard of living to be involved with at least one cause if not several. From the Rady Family who a couple of years ago gave a sizable gift to the San Diego Children's Hospital having it re-named Rady Children's Hospital to the Jacobs family who are known as one of the most philanthropic families and big patrons of the art who donated 100 million dollars to the San Diego Philharmonic Orchestra.

La Jolla's zip code is 92037 and it has consistently remained on the lists of most expensive zip codes in the country. Today there are 427 properties listed for sale out of which 259 are detached homes. There are 83 properties in pending Status and there have been 50 properties sold in the last 30 days. The average sale price today is $866.06 per square feet and 120 days is the average days that a property takes to sell.

If you have any quetsions regarding this area or any other areas in San Diego please contact me

www.SanDiegoExclusiveProperties.com
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History of Carmel Valley, San Diego

2009-10-12T10:22:00.000-07:00

Carmel Valley is a community located in San Diego county, on the North Coastal region.

It's early history is simple, it's first known human residents were the La Jolla Indians followed by missionaries when they were passing through on their way from one Mission to another. However the area was ranch land until developers bought the land to start building homes well into 1970's.

In February of 1975 the City Council approved a Master Planned Community to be built in the area, the original name for this community was "North City West" name that was changed in the early 1990's to Carmel Valley because there had been a monastery of the Carmelita's nuns in this area in the early 1900's and people already referred to the area as Carmel Valley. The idea was to build a community to become a model for other master planned communities to be built at later dates through out San Diego, this communities were to include plans for parks, recreation areas, trails, etc.

Wikipedia defines the geographic location as follows: "Carmel Valley is bordered to the north by the North City Future Urbanizing Area (NCFUA) and Pacific Highlands Ranch; to the south by Los Peñasquitos Canyon Preserve and Torrey Hills; to the east by Pacific Highlands Ranch and Del Mar Mesa; and to the west by Interstate 5 and Torrey Pines

Even though people refer to all of the areas that wikipedia refers to as Carmel Valley as a whole, according to the city, the boundaries remain unchanged from the original plan, even when they share the same 92130 zip code and in some cases the same school district, some of these communities, like in the case of Pacific Highlands Ranch and Torrey Hills, are not proper Carmel Valley.

This area, has established a reputation for having not only a great location with easy access to major freeway's but close proximity to the ocean as well as to the Torrey Pines preserve and hiking trails. However, it is best known for it's award wining school district which has become to be identified with high parent participation. It is a very family oriented area.

There is sometimes some confusion with the name of the area because there is a Carmel Mountain area very close by located on the I-15 corridor and then there is another Carmel Valley in Northern California, adjacent to the City of Carmel on the Monterrey Peninsula.

There is still new construction going on in the area but at a much slower pace, both because of the times as well as the fact that land is becoming scarce and the area is being built out.

Carmel Valley is referd by some as the typical suburbia with it's most characteristic resident being the big SUV driving soccer mom carting kids around the area. Yet we also have offices, big corporations, hospitals and retail that make this area a very desirable place to live.

For more information regarding the area feel free to contact me or keep checking this blog where I will keep posting everything about this and other surrounding communities.

If you want to search for properties in this area feel free to use our web site
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Do we have a Sellers Market in San Diego?

2009-09-29T16:18:00.000-07:00

I just finished doing my bi -monthly analysis of the market conditions in the San Diego region and I was struck by how many of the local zip codes have an inventory of less than 6 months.

If you have been following my blog you will probably remember that the mark to differentiate between a buyers and a sellers market is the months of inventory available for sale at a given time frame. Any market that has 6 months worth of inventory or above is considered to be a "Hot" market or a "sellers" market.

This morning I checked 21 different zip codes in the area and found that 12 out of those 21 had an inventory that was under the 6 month mark and only 4 had an inventory above the 10 month mark.
The other interesting factor that came to be apparent in this mornings research was that many of these areas with low inventories had sold for an average of 100 percent of asking price or more. Another clear sign of a Hot Market that we had not seen in a long time.

Among the areas with the lowest inventory rates are the following zip codes:

Zip Code Inventory
91010 3.83
91913 3.57
92010 2.9
92122 3.8

Two of this zip codes belong to Chula Vista, one more to Carlsbad and the last one is in University City.

It is not surprising that most of the areas with the hottest markets at this point are also the areas that had the highest drop in prices and the highest number in foreclosures and short sales in the county.

Now looking at the zip codes that currently have the highest inventory we see:

ZIP CODE INVENTORY
92014 9.35
92075 11.45
92037 12.4
92101 9.73
92067 33.4

Most of this areas are coastal areas or very expensive zip codes with multi million dollar homes that have an average selling price of around $400 to $500 dollars per square foot. This are homes that would require jumbo loans if someone wanted to purchase a home with a 20 or 30% down payment.

The one exception to this last statement would be the 92101 zip code that belongs to the Downtown San Diego region. The situation with downtown is different because of the recent overflow of new projects that have been built in the last few years, that include many high rises and multi unit condos that have inundated the market in that particular area.

So as a conclusion from this morning look at the Real Estate market latest numbers I must say that at least for now the market HAS shifted into a hot market in the low to mid range priced areas and is staying cool at the upper priced regions.

The question still remains what is driving this market upswing? many believe it is the first time home buyers fueled by the tax credit incentive that is about to go away. together with the low mortgage rates and investors jumping in to buy well priced properties at bottom prices.

I hope you find this information helpful and if you are interested in getting any more specific details regarding the data that was used for this Blog, please feel free to contact me.

rina@my858realtor.com
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Has buying foreclosures become a speed sport?

2009-08-05T11:51:00.000-07:00

If you are someone who has been thinking of taking advantage of the current Real Estate Market crisis and all those foreclosure properties that have been hitting the market, you are not alone, you are however thinking too much and not acting fast enough.

What I mean by that is that there are many people already out there trying to do just that, they are making offers and trying to buy these properties. You have individuals looking to buy their personal residence, small investors looking at one to four properties and you also have major investors looking to buy in bulk or at the very least very large quantities of bank owned properties also called REO's.

There are in fact so many people trying to buy them, that when you put it together with some of President Obama foreclosure prevention efforts, particularly the foreclosure moratorium, the outcome has been that it brought the inventory of homes in the $300,000 range which is the average REO listing price way down, according to the California Association of Realtors it went from a 10 month inventory to a 3.5 month inventory in one year. Nationally REO's went down 26% from June of 2008 to June of 2009.

Some areas like Sacramento which was one of the hardest hit areas by foreclosure's are even down to a 30 day inventory or less.

So, how is this translating into the actual buying process? Well,people who are looking to buy these homes basically are getting just one shot at making and offer, they have to offer what has been now called their "highest and best" gone are the days of negotiating, starting low and getting a counter offer. If you have been writing offers and trying to buy a property for the last 6 months, by now you know that if you see a good one you act on it quickly, you come in at asking price or over asking price and when you are looking you better be ready to move fast or it won't be there by the time you are ready, this means having your financing in place, pre-approval and proof of funds as well as down payment all ready to go.

When you look at what has been happening it is very interesting to see that some of the properties in this up to $500,000 price range come into the market and go into pending sometimes less that 2 hrs later. Before banks were leaving properties on the market for 3-4 months before accepting an offer, however some banks finally figured that it was costing them too much in HOA's, taxes and other fees so they are moving them very quickly.

The other reason some people have mentioned as to why are trying to get this properties out of their books quickly is because they are concerned of a new wave of foreclosures inundating the market sometime next fall.

One of the ways that they had managed to lower the number of foreclosures was by trying to do loan modifications with some of the homeowners, I have to say that from what I have seen not many of these have worked out, most people have gone to the next option which is attempting a "Short Sale". From the ones that were modified, it has been reported that 53% of them have fallen back into arrears, making Loan Modifications only a temporary extension of the problem but not a solution, and one of the reason for that concern regarding a new wave of foreclosures.

Short Sales and Loan modifications are 2 other subjects that I would like to address on a later post, there is a lot to be said about them as well.

But in closing, The market for REO's at the price point we have been addressing here is a hot market and the more information you have and the faster you can make an educated offer, the greater the chances of your success in acquiring one of these homes. You will be in a much better position if you have an experienced team and a clear strategy.

If you want any information or need any help getting started just contact us and we will be happy to help

Getting Ready to Sell your Home

2009-07-23T11:27:00.001-07:00

If you are getting ready to sell your home there are many things yo should do even before putting the sing up on the lawn.

I would start with the 3 D's and move on from there. Here is a list:

Disassociate:

As hard as it may seem it is very important to shift your thinking to this no longer being your home, if everything goes right it will very soon be someone Else's and the sooner you come to grips with that reality the smother the whole process will go. This first step will allow you to move on to the next one with much more ease and understanding. Rather than fighting the process you will be ready to embrace it and move ahead.

De-personalize

If you take away most of the things that are very personal it will allow the visiting buyers to visualize themselves living there. If you have a room full of your fishing trophies it might bring you great pride and joy but it will not speak kindly to everyone visiting the house. It is surprising how many people can not see past what is there right now. In a moment of uncertainty such as we are living, many buyers will not move forward on a house unless they really fall in love with it and can see themselves living in it for a long time if needed.

You can leave some personal items and a few pictures here and there but the picture wall with 360 pictures that include your cousins prom picture, your nieces who are 21, first grade picture etc, that wall needs to be freed, pictures taken off and most likely will need a fresh coat of paint.

De-clutter

I can not stress enough the importance of this one step.

I understand you are still living in the house and need to have your things with you, but if there are things everywhere, the message will be, this house is to small and It does not fit anything!

Also many people do not deal well chaos and it will make them feel uncomfortable just to be in a cluttered home, they might like the house but will leave with a feeling of not being comfortable there. You want people to come in and stay a while, the longer a prospective buyer stays in a home they are viewing, the greater the interest, you want them to come in, sit down in the living room, they are picturing their life in the home.

De-cluttering means, taking out a lot of the things you keep in the closets and kitchen cabinets as well, people will open them and try to see if there is enough space or if they seem crammed.

Sometimes the best thing to do is to rent a storage unit and start packing, you are going to have to do this eventually in order to move anyway, why not do it now and have the house show better, bigger more orderly. Kids can use less toys for a little while, winter clothes does not need to be in the house if it is 82 degrees outside, you get the idea.

Make Repairs

If the front door does not open easily and it will take the agent accompanying the buyer 3 min to unjam it...FIX it! Otherwise people are stepping into the home with the notion that this house will need repairs right away and that it has not been properly maintained so there will be things that are not visible that will be in need of repairs soon.

There are many little things that have been bothering you but you just think they are not that big of a deal...they are if you don't fix them, they are not that big of a deal to solve so just go ahead and take care of them before people start coming to see the home.

Like with everything, you only have ONE chance to make a first impression, if a buyer comes in and sees many little things that need fixing they will probably move on to the next house OR reflect it on the offer they make, not the cost of repair only but the cost and the fact that they are willing to go through the hasle of fixing it. Even worse will be that the realtor taking this client who did not want to make an offer will remember the fact that the house had many issues to fix and will think twice before showing it to any other clients.

Experience it for the first time

Try looking at your home with fresh eyes, start from the outside and go through it as if you were thinking of buying it. From the curb appeal and landscaping to the layout of each room. Curb appeal IS very important. I have had clients that will tell me the don't want to go inside of a home just based on what they see from the outside or sometimes I have seen clients fall in love with a home even before going in.

Can you change anything to make it more appealing even if it is less functional for you fir a short time? Maybe send some of the furniture to storage as well?

Go the extra step but not too far

Sometimes with the best of intentions people re-do the house and go all out painting it and staging it before putting it on the market. That is GREAT, i believe in well done staging, but be careful that you are not going too far and making it a very particular style or use colors that will not go with most peoples taste and style. You would be limiting market and in some cases I have seen people de-clutter their home only to fill it back up with "staging" props.

Price it right

You can do all of the above and still not get any offers if the price is not chosen correctly, actually you might go through all the trouble only to find yourself with very little to no showings at all!

This is where a very good , Honest realtor makes a big difference. You should talk to a couple of realtor's before choosing one but be very careful that you don't go with one because he promised you to get you more money for your home or because he quoted your home as being worth more.

The best one is the one that is willing to loose the listing for telling it like it is. Besides which one do you think will sell your home sooner? It is proven that the biggest chance you have to sell your home for a better price is within the first 45 days of the house entering the market, if you overprice it at the beginning you just lost that window because you will have less showings and will be seen as unmotivated and unrealistic to sell.

Be Flexible

Be as flexible as possible with the showings. If you don't make it easy on people to see the home they will not make offers on it.

Don't take it Personal

People have different tastes for everything, homes are no different. Some will like your home some wont.

And when it comes to low offers do not take offense, look at it, answer it and let it go. Now if you keep getting all this low offers it is time to re-asses your price, maybe the offers are not low but it is your expectations of price and your take on the market that is too high. Go back and look at the recent numbers in your specific area and take into account all factors affecting your home.

Ultimately the "Market" is the real determinant of value.

Please feel free to contact me for any questions or comments, you can find me on:

www.my858realtor.com

http://twitter.com/bright_side

Rina Pod on Facebook

or e-mail me

rina@my858realtor.com

HAPPY MOVING!!!

Is a new law stopping the Real estate market from recovering?

2009-06-30T15:12:00.000-07:00

This past May 1, there were serious changes enacted regarding the appraisal process, particularly in how appraisals are ordered for conventional loans called HVCC.

This brought many changes and like with any big shift there is a lot of confusion of what is allowed and what is not.

In short and very simplified terms ,the biggest change is that before that day, the appraisal was ordered by the loan officer, from an appraiser of his choice, or if agreed either seller or buyer could suggest and use an appraiser of their choice.

Under the new order of things the loan officer can not have any contact whatsoever with the appraiser and of course he has no say on who that appraisal will be, the appraiser will be retained from a central pool of approved appraisers. The appraisal has to be fully executed before any opinion of value is given and it is not permitted to ask for a second appraisal without just disqualification of the first, having an appraiser who is unfamiliar with a particular area perform the appraisal does not constitute reason enough to disqualify an appraisal.

It does not sound like a huge change yet it is.

I have recently been helping clients purchase a home in the San Diego area. Some of them are in the 500,000.00 and under price range. What we have found would surprise many that think that the Real Estate market is still trending down. Most homes that hit the market in this price range, if priced correctly, will start getting offers within an hour or so of getting listed. Most of them we have seen are getting multiple offers, what that translates to is properties getting offers at well over asking price because it becomes a bidding war, just what a seller dreams of.

Yet, there is big problem, this is where the appraisal becomes an impediment to the escrow being able to close. The reality is, the appraisal process is taking much longer because some of this appraisers take in some cases even over 2 weeks to do the appraisal by which time the contingencies need to be removed in some cases even before the appraisal was completed putting buyers in a tough situation. Also, some of this appraisals are coming back very low because appraisers are trying to cover themselves since they they have been blamed for contributing to the current Market crisis by inflating home values, they are now erring on the side of prices trending down and coming back with very low appraisals.

So...we have an contract that is on the upper side of the spectrum vs. an appraisal that is in the very low end of the spectrum, the result is that the loan will not fund, and escrow will not be able to close unless:
1)The buyer is able and willing to come in with much more cash to balance off the difference and the lender is OK with that.
2)The buyer and seller re-negotiate the price. Keeping prices down.

It turns out that that little change in the home selling process has made many transactions stall and fall out of escrow and has limited the ability of the market to begin to start trending up.

Another result of this change is that appraisals have become much more expensive, that cost is usually paid for by the buyers who will have no guarantee that the home they are purchasing the appraisal for will be theirs even when both parties really have come to an agreement and are happy and in accordance with all terms.

At this point, this has become such a clear and present problem that the president of the National Association of Realtors has been invited to go speak about it in Washington so that they can address it and hopefully correct it, let's just hope the correction comes soon and in the right form.

When Can I Buy A Home Again After Foreclosure or Short Sale?

2009-06-03T09:52:00.000-07:00

When Can I Buy A Home Again After Foreclosure or Short Sale?

I found this very interesting article on CAR on want to make it available to the general public so I am sharing it with you.

When can I Buy A Home Again After Foreclosure or Short Sale?

The answer to this question has been very vague until now. Finally here are some answers to questions so many Californians are asking.
This article expands on an earlier post we wrote “Short Sale? Foreclosure? What should I do? and helps to clarify what the differences are and where your credit stands after you have experienced one of these situations.
This information comes directly from the California Association of Realtors legal department.
One of the concerns a consumer has after experiencing a bankruptcy, foreclosure, or short sale (referred to as a “preforeclosure sale” by Fannie Mae) is the ability to obtain credit to purchase another home. Fannie Mae has updated its credit guidelines. This legal article summarizes those guidelines.

Q 1. How long is the time period after a foreclosure before a consumer can be eligible to obtain credit to purchase a home?

A Five years from the date the foreclosure sale was completed.
Additional requirements that apply after 5 years and up to 7 years following the completion date are as follows:
. The purchase of a principal residence is permitted with a minimum 10 percent down payment and minimum representataive credit score of 680.
. Purchase of a second home or investment property is not permitted.
. Limited cash-out refinances are permitted for all occupancy types pursuant to the eligibility requirements in effect at that time.
. Cash-out refinances are not permitted for any occupancy type.
(Source: FNMA Announcement 08-16, 6-25-08 )

Q 2. Why do the additional requirements for foreclosures in Question 1 only apply from 5 to 7 years following the foreclosure completion date?

A According to Fannie Mae policy in Part X, Section 103 of the Selling Guide, Fannie Mae requires only a 7-year history to be reviewed for all credit and public record information. The 7-year timeframe also aligns with the information provided by the borrower on the loan application relative to disclosure of a past foreclosure action. (Source: FNMA Selling Guide, 4-1-09. )

Q 3. Does a shorter time period apply if the borrower has “extenuating circumstances” that led to the foreclosure?

A Yes. Three years from the date the foreclosure sale was completed. The same additional requirements apply as listed in Question 1 except the minimum credit score of 680 is not required. (Source: FNMA Announcement 08-16, 6-25-08. )

Q 4. What are”extenuating circumstances” ?

A Fannie Mae describes “extenuating circumstances” as follows:
Extenuating circumstances are nonrecurring events that are beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.
If a borrower claims that derogatory information is the result of extenuating circumstances, the lender must substantiate the borrower’s claim. Examples of documentation that can be used to support extenuating circumstances include documents that confirm the event (such as a copy of a divorce decree, medical bills, notice of job layoff, job severance papers, etc.) and documents that illustrate factors that contributed to the borrower’s inability to resolve the problems that resulted from the event (such as a copy of insurance papers or claim settlements, listing agreements, lease agreements, tax returns (covering the periods prior to, during, and after a loss of employment), etc.).
The lender must obtain a letter from the borrower explaining the relevance of the documentation. The letter must support the claims of extenuating circumstances, confirm the nature of the event that led to the bankruptcy or foreclosure-related action, and illustrate the borrower had no reasonable options other than to default on their financial obligations.
(Source: FNMA Selling Guide, 4-1-09 at 391. )

Q 5. How long is the time period after a deed-in-lieu of foreclosure before a consumer can be eligible to obtain credit to purchase a property?

A Four years from the date the deed-in-lieu was executed.
Additional requirements that apply after 4 years and up to 7 years following the completion date are as follows:
. Borrower may purchase a property secured by a principal residence, second home, or investment property with the greater of 10 percent minimum down payment ro the minimum down payment required for the transaction.
. Limited-cash-out and cash-out refinance transactions secured by a principal residence, second home, or investment property are permitted pursuant to the eligibility requirements in effect at that time.
(Source: FNMA Announcement 08-16, 6-25-08. )

Q 6. Does a shorter time period apply if the borrower has “extenuating circumstances” that led to the deed-in-lieu of foreclosure?

A Yes. Two years from the date the deed-in-lieu was executed. The same additional requirements apply as listed in Question 4 after 2 years up to 7 years. (Source: FNMA Announcement 08-16, 6-25-08. )
See Question 4 for the definition of “extenuating circumstances.”

Q 7. How long is the time period after a “preforeclosure sale” before a consumer can be eligible to obtain credit to purchase a property?

A Two years from the completion date. No exceptions are permitted to the 2-year period due to extenuating circumstances. (Source: FNMA Announcement 08-16, 6-25-08. )

Q 8. What is a “preforeclosure sale” mentioned in Question 6 and is that the same as a short sale?

A “A preforeclosure sale involves the sale of the property by the borrower to a third party for less than the amount owed to satify the delinquent mortgage, as agreed to by the lender, investor, and mortgage insurer” (Source: FNMA Announcement 08-16, 6-25-08 ).
Although the terms preforeclosure sale and short sale have been used interchangeably, there is a significant difference for purposes of obtaining credit. For Fannie Mae purposes, a preforeclosure assumes that the borrower has been delinquent in paying his or her mortgage and the lender agrees to accept a lesser amount to avoid the time and expense of a foreclousre action. A short-sale, however, can also refer to situations in which the lender of the mortgage agrees to a payoff of a lesser amount than is actually owed, even on a current mortgage, to faciiate the sale of the property to a third party. (Source: FNMA Announcement 08-16 Q&A, 8-13-08. )

Q 9. Does a shorter time period apply if the borrower has “extenuating circumstances” that led to the preforeclosure (short) sale?

A No. There are no exceptions to the 2-year time period. (Source: FNMA Announcement 08-16, 6-25-08. )

Q 10. If a borrower sold his or her property as a short sale but was never delinquent on that mortgage and is now attempting to purchase a new primary residence, will Fannie Mae purchase the loan?

A The loan will be eligible for delivery to Fannie Mae provided that the borrower’s previous mortgage history complies with Fannie Mae’s excessive prior mortgage delinquency policy–that is the borrower does not have one or more 60-, 90-, 120-, or 150-day delinquencies reported within the 12 months prior to the credit report date–and the borrower has not entered into any agreement with the short sale lender to repay any amounts assoicated with the short sale, including a deficiency judgment. (Source: FNMA Announcement 08-16 Q&A, 8-13-08 ; FNMA Selling Guide, Part X, Chapter 3, Section 302.09. .)

Q 11. Are preforeclosure (short) sales and deed-in-lieu of foreclosure actions identified on a credit report?

A Preforeclosure sales may be reported as “paid in full” with a “settled for less than owed” remarks code, and the mortgage tradeline would indicate any recent delinquency. A deed-in-lieu may be reported by a remarks code indicating a deed-in-lieu. (Source: FNMA Announcement 08-16 Q&A, 8-13-08. )

Q 12. How long is the time period after a bankruptcy (all except Chapter 13) before a consumer can be eligible to obtain credit to purchase a property?

A Four years from the discharge or dismissal date of the bankruptcy action (Source: FNMA Announcement 08-16, 6-25-08 ).

Q 13. How long is the time period after a Chapter 13 bankruptcy before a consumer can be
eligible to obtain credit to purchase a property?

A Two years from the discharge date and four years from the dismissal date (Source: FNMA Announcement 08-16, 6-25-08 ).

Q 14. Does a shorter time period apply if the borrower has “extenuating circumstances” that led to the bankruptcy (all actions)?

A Yes. Two years from the discharge or dismissal; however, no exceptions are permitted to the 2-year time period after a Chapter 13 discharge (Source: FNMA Announcement 08-16, 6-25-08 ).
See Question 4 for the definition of “extenuating circumstances.”

Q 15. How long is the time period after multiple bankruptcy filings before a consumer can be eligible to obtain credit to purchase a property?

A Five years from the most recent dismissal or discharge date for borrowers with more than one bankrutcy filing within the past 7 years (Source: FNMA Announcement 08-16, 6-25-08 ).

Q 16. Does a shorter time period apply if the borrower has “extenuating circumstances” that led to the multiple bankruptcies?

A Yes. Three years from the most recent discharge or dismissal date. The most recent bankruptcy filing must have been the result of extenuating circumstances. (Source: FNMA Announcement 08-16, 6-25-08. )
See Question 4 for the definition of “extenuating circumstances.”

Q 17. What is the difference between a Chapter 13 bankruptcy and a Chapter 7 bankruptcy?

A Chapter 13 permits a borrower with a regular income to propose a plan to repay some or all of his or her obligations over a period of up to five years. A borrower who files a Chapter 7 is permitted to retain exempt assets and receive a discharge of the borrower’s debts. Chapter 7 is a relatively quick liquidation process that is generally completed within 120 days. Chapter 7 cases are rarely dismissed. (Source: FNMA Announcement 08-16 Q&A, 8-13-08. )

Q 18. What is the difference between a Chapter 13 dismissal and a Chapter 13 discharge?

A A borrower who files a Chapter 13 can dismiss the case at any time (voluntary dismissal) or the case may be dismissed by the court based on the borrower’s failure to comply with the requirements of the Bankruptcy Code or to make the required payments. If the borrower who files a Chapter 13 case makes all of the payments required by the plan, the borrower receives a discharge at the end of the plan. A borrower who doesn’t make all the payment required by the plan may still receive a discharge if the court finds, among other things, that the borrower made a certain amount of the payments and the borrower’s failure to make all of the payments was due to circumstances beyond the borrower’s control. (Source: FNMA Announcement 08-16 Q&A, 8-13-08. )

Q 19. What are the requirements to re-establish a credit history?

A After a bankruptcy or foreclosure-related action, a credit history must meet the following rquirements to be considered re-established:
. It must meet the requirements for elapsed time (as discussed in this article.
. It must reflect that all accounts are current as of the date of the mortgage application.
. it must include a minimum of four credit references. At least one of the references must be a traditional credit reference, and one of the references must be housing-related.
A housing-related reference must cover the period following the bankruptcy discharge or dismissal, foreclosure, or deed-in-lieu, and can be in the form of mortgage payments or rental payments.
If rental payments were not reported to the credit repositories, the lender must obtain copies of bank statements, money orders, or cancled checks for the most recent 12-month period as a supplement to the rent verification.
. It must reflect three of the four credit references, including rental housing references, as active in the 24 months preceding the date of the mortgage application.
. It must include no more than two installment or revolving debt payments 30 days past due in the last 24 months.
. It must include no installment or revolving debt payments 60 or more days past due since the discharge or dismissal of the bankruptcy or the completion of the foreclosure-related action.
. It must include no housing debt payments past due since the discharge or dismissal of the bankruptcy or the completion of the foreclosure-related action.
. It must include no new public records since the discharge or dismissal of the bankruptcy or the completion of the foreclousre-related action. Public records include bankruptcies, foreclousres, deeds-in-lieu, preforeclosure sales, unpaid jdugments or collections, garnishments, liens, etc.
(Source: FNMA Selling Guide, 4-1-09 at 392. )

Q 20. Where can I get more information?

A This article is just one of the many legal publications and services offered by C.A.R. to its members. For a complete listing of C.A.R.’s legal products and services, please visit C.A.R. Online at http://www.car.org/.

Please make sure to ask a lawyer or acredited CPA, this information is not intended as legal advice and should not be taken as such.

Feel free to contact me with any questions or if you are thinking of selling your home wether it is a pre-foreclosure situation or not.

Rina Podolsky
Realtor

2009-05-19T12:21:00.000-07:00

Home Buyer Tax Credit Becomes Down Payment

HUD creates new $8000 dollar tax credit flexibility for first time home buyers.

In an effort to spur the housing market, the United States Department of Housing and Urban Development released plans to implement flexibility to the $8,000 First Time Home Buyer Tax Credit; as part of President Obama’s 2009 stimulus package.

"We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a down payment," United States HUD Secretary, Shaun Donovan stated.

HUD will allow approved lenders and nonprofits to issue short-term bridge loans buyers can use for down payments. Buyers would repay the loans after getting their tax refunds in 2010.
“Allowing first time homebuyers to utilize the tax credit as a down payment, plus the availability of low interest rates creates incredible opportunities for those who waited. There might be a cost or a fee involved on taking advantage of this scenario, the cost is still to be determined.

If you have any questions regarding real estate please contact me rina@my858realtor.com

9 Easy steps to Buying a Home in this Market

2009-05-07T14:59:00.000-07:00

SO YOU ARE THINKING OF BUYING A HOME…WHER DO YOU BEGIN?

9 Easy steps to purchasing a home in today’s market

1-Look at your reasons for homeownership and make an informed decision whether buying a home IS the right step for you at this time. If it is, determine your time frame.
2-Sit down and talk to a lender. Yes even before looking at a single property, get the facts of what you can afford in this market and which loan programs are out there and right for you (it might be more or less than you think). This will allow you to be very precise and save time and even hardship down the line. You will also be ready if you come across a great opportunity and want to make an offer right away.
3-Now that you know how much house you can afford and what limitations your loan has (i.e FHA loans will have strict guidelines and not all properties will qualify for this loans) Make sure you will have enough money in reserves after the purchase.
4-Sit down with the other people that will make the decisions with you and make a list with at least 3 categories: a) Things I NEED (must haves) b) Things I would LIKE (Nice if I could have) c)Things I could NOT accept (deal breakers). In this list you will asses what is important to you from the area to the numbers of bedrooms and Bathrooms. Try to make it as extensive and detailed as possible but then be willing to be flexible and open, this list will change through the process. It is O.K.
5-Start looking…If you have not contacted a Realtor up to this point, this is the time to do so, you want someone who will not only help you find a home (“apparently” not that hard to do on your own with the help of today’s technology) but will actually look after your best interest and give you guidance about the process, the specific areas, will be able to navigate this real estate market and all the different forms of listings that have come up in recent months (REO, Short Sales, Auctions, etc.) the market is changing day to day and you need a professional that is ahead of the game to know how to deal with each situation and to prepare you on what to expect , how long it might take, and how to make the right decision in each case.
6-Be prepared to start writing offers when you see a home you like. In order to do this your agent will help you determine the right offer depending on the particular circumstances. Not only money wise but timing, correct wording on the contract, order of paperwork it really does make a big difference when dealing with banks making the final decision.
7-Get an accepted offer (probably after a couple of offers and counter offers) Open an Escrow. This is where your agents Negotiation skills will come into play.
From this point on, there will be some deadlines to meet, your Realtor should have already sat down with you and explained the Escrow process and what comes next, including removal of contingencies and specific timeframes. There are inspections to be done, documentation to be gathered and funds to be handled….
8-Everything goes according to plan (usually there will be some bumps and unexpected turns down the line, but do not worry this is why you have a great agent or team of agents working on your behalf) Seller gets paid…you just got yourself a HOME!!!
9-Remeber to have fun!!! Try to enjoy the ride and be open to adjust the path during the process.

2009-04-23T07:55:00.000-07:00

The other day, I had several errands to run, and when I pulled my car up to a department store parking lot...it was full! Under the weight of my usual to-do list, I normally would've been frustrated, but instead, I was elated! I continued on with my errands, only to find the next two situations exactly the same. People were out, places were crowded. Later that evening I went to dinner in a local restaurant that was so busy the wait for a table was 45 minutes.

What could have been a series of annoyances turned into signs that people were showing more consumer confidence by spending again. Keep your fingers crossed that we have several months of increased consumer spending -- perhaps brought on by recent stock market gains.

Today is a great time to sell a home, while inventory levels remain low and in most cases prices have been holding steady.

It's also a great time to buy, as the interest rates are exceptionally low and there are some truly great buys to be found in this market.Remember -- you only know when things have hit bottom when they start to go back up. And things sure seem to be looking up!Have you found yourself more confident to dip your toe in the retail pool? I'd love to hear about it.

Warmest regards,

Rina

What constitutes an "Amazing Deal" ?

2009-04-13T13:59:00.000-07:00

Last weekend I was holding an open house on 2 very attractive properties. Yes 2...Let me explain, this are 2 brand new homes, one next to the other, with many upgrades, absolutely move in ready including landscaping front and back! Did I mention they were priced about 400k less than the same floor plans across the street? and that is not considering all the upgrades and landscaping the neighbors put in after closing.

So as I said, I was holding this 2 homes open with a great turnout, however when I asked questions I kept getting one answer in particular over and over....I love the house, however....what I am really looking for is a "Killer deal"! OK, I can respect that, so I asked, What does a "Great deal" look like to you? How will you know when you have found one? It surprised me to see how few people had an answer. If you do not know what you are looking for looks like, How will you know when you have found it?

I open this question to all of you, I would love to hear your feedback, I am sure many of you do have a very clear picture and that is what I would like to hear.

Of course what constitutes a deal varies from area to area but to be clear you should do some research before heading out, be sure to know the specifics of the area and some of the things to consider are:

Look at the most recent numbers (up to the last 2 weeks) for that specific area you are considering, it can be as specific as that floor plan in that particular development on that side of the street.
Know how the market is behaving, how this area has behaved so far, does it offer something to back this prices, is it in high demand, why is it so? many of these questions can be answered with the help of a local realtor that is very familiar with such area.
Think about the pros of this particular home, some of the things it offers might have a greater resale value than other very similar homes (i.e. Newer home, upgraded flooring, kitchens or other areas, pool, large lot, end of cul de sac, etc.) or it actually might be harder to sell than other homes due to some specific characteristics (i.e closeness to power lines, smaller lot, noise, traffic,etc)

One word of caution, I have seen a few listings with a price that were well bellow market, in some cases this have turned out to be what you can consider as a bait and switch or a hook. When you make an offer on the property they come back saying that they have received many offers so the bank (in most cases) or the owner, are looking at all of them but will only consider yours if you go a little higher since you are bellow the others, (still at a price where is bellow market comps) then they come back again and again telling you that you are amongst the favorites and are now so close until you realize you have now reached market price or above. Not such a deal after all...in the process you let some other homes you liked go into escrow where you could have actually NEGOTIATED a better price.

Now having said all of that, please remember that you are buying a home, this is where you are going to spend every day for hopefully several years so it is very important to remember that even though price IS important, getting something that will make you and your family have a better quality of life in your day to day is also a very important factor.

So remember, clear picture before you head out, get the correct data and happy hunting!

If you would like any information on a specific area please let me know, I can always help you or find someone who can.

Best regards,

Rina

Rina Podolsky

Prudential California Realty

Honor Society

Fine Homes Specialist

rina@my858realtor.com

www.my858realtor.com

What is a Foreclosure?

2009-03-20T12:52:00.001-07:00

In today's market, buyers are looking for the "killer deal", and I am constantly finding clients who want to purchase a home that is a "foreclosure".
I understand their point of view and respect the fact that they are looking out for their best interest or at least they think they are. One of the problems with this strategy arises from the fact that many people don't clearly understand what a foreclosure is, they use the term to refer to everything from a Short Sale to a property sold at Auction or an REO.
So what are the differences?
A foreclosure is a legal process in which, real property is sold to satisfy a public or private debt for which the real property has been pledged as security.Usually this happens against the wishes of the owner.
This process begins with the Notice of Default (and it varies according to local state law) but if not resolved it will end in what is called at a Trustee Sale (also called Auction)
When the property ends up belonging to the holder of the note (lender) it is called an REO (real Estate Owned). And many times it is then given to a Listing agent to be put on the market for sale.
The fact that a home might be in a foreclosure process does not necesarily mean it is currently on the market or that it will be sometime soon, in many cases, homeowner solve their delinquencies and that is the end of it.
It is also important to point out that depending on whether you are buying a property at a Trustee Sale, an REO, Short Sale etc, make sure that you are working with reputable agents that can guide you through the process, the are very different from each other and each has its own time-lines, requirements and implications, it is always important to know what you are getting yourself into before you begin.
Lastly I mentioned the Short Sale. Basically it is when your property is worth less than the total mortgage you owe on it. If you want to sell your home in this situation it will have to be approved by the lenders and there might be a tax implication for the seller of such property.

There is a lot to talk about on the subject if you have any questions contact me.

Have a GREAT weekend!

Rina Podolsky
rina@my858realtor.com
www.my858realtor.com

Remember if you are thinking of buying or selling a home I would like to apply for the job!

Short Sales

2009-03-17T12:29:00.000-07:00

Today I am micro blogging...Maybe I have been spending too much time in twitter lately.

I found this article that clearly explains what is called a "Short Sale".
http://www.realtor.org/rmosales_and_marketing/handoutsforcustomers/handouts/shortsales_sellers

If you find yourself in any of the situations described in the article above, please contact us so that we can sit down with you and help you decide what your best options are.

For those looking to purchase a home in this market, it is important that you read the article as well so you know what a Short Sale entitles and you understand the process of making an offer to buy such properties. If you want to learn more regarding this subject contact me.

Rina Podolsky
rina@my858realtor.com

Torrey Hills Master Community

2009-03-13T10:26:00.000-07:00

I will be sharing some information about different areas around San Diego, their history, local Restaurants ,schools, etc.

TORREY HILLS MASTER COMMUNITY

The planning area contains approximately 784 acres and is located in the northern region of the City. The community is bounded by Interstate 5 to the west, the Carmel Valley community to the north and east, and the Los Peñasquitos Canyon Preserve and Mira Mesa community to the south. West of Interstate 5 is the Torrey Pines community planning area.
The Torrey Hills area's planning history is tied to the planning efforts for Los Peñasquitos Canyon Preserve. For nearly ten years, prior to the adoption of the City of San Diego Progress Guide and General Plan in 1979, the City and County had been conducting studies on Los Peñasquitos Canyon as an open space park. During that period, the Carmel Valley community was being planned, and the Torrey Hills area was specifically excluded so as not to preempt the determination of a precise park boundary. By the time the City's Progress Guide and General Plan was adopted in 1979, the precise boundary of the park still had not been determined, and the Torrey Hills property was designated as Future Urbanizing on the General Plan until the boundary of the preserve could be determined.
In February 1980, Genstar-Peñasquitos (now AG Land Associates, LLC) dedicated a total of 1,806 acres of Los Peñasquitos Canyon to the City for use as a preserve. This action precisely defined the boundaries of the preserve as it borders the Torrey Hills property. This action subsequently cleared the way to initiate a community planning program for the Torrey Hills property and to amend the City's Progress Guide and General Plan which transferred the original plan area from Future Urbanizing to Planned Urbanizing.
Prior to 1986, approximately 178 acres located adjacent to the Torrey Hills community planning area was designated as "Future Urbanizing." On November 4, 1986, the citizens of San Diego approved a ballot measure which directed that a 166 acre parcel owned by the City and located at the western boundary of Los Peñasquitos Canyon Preserve adjacent to Interstate 5 be traded for 288 acres of privately owned land located adjacent to the preserve and just north of the area known as "The Falls." An additional 12 acres located between the 166 acre parcel and Interstate 5 was also incorporated into the ballot measure. This total 178 acre addition to Torrey Hills was referred to as the "Park Trade" property. Approval of the ballot measure resulted in a transfer of this property from Future Urbanizing to Planned Urbanizing.
In 1994, the City Council approved an amendment to the Torrey Hills Community Plan and the City's Progress Guide and General Plan which served to implement the results of the initiative, converting the Park Trade property from Future Urbanizing to Planned Urbanizing, and providing for expanded industrial and residential opportunities for the community. Other minor changes which occurred in the 1994 update included a restructuring of industrial uses diminishing the focus on professional office use; the inclusion of 1.3 acres previously shown within the Carmel Valley Neighborhood 8A Precise Plan; and the addition of Vista Sorrento Parkway, the northern extension of which provides north-south access through the community between Carmel Mountain Road and Sorrento Valley Boulevard.
In subsequent years the area devoted to industrial land uses has been reduced and concentrated in the western portion of the community, where easy access to Interstate 5 and Vista Sorrento Parkway is available. An amendment in 1997 provided a broader range of residential land uses, varying from apartments, condominiums and town homes, to smaller lot detached residential and single-family subdivisions. A Neighborhood Commercial Center was added, providing for retail commercial uses typically serving residential neighborhoods. Additional amendments since 1997 have also changed residential and industrial land uses in the western portion of the community.

By 2009 there are over 900 Homes divided in 12 communities, plus Over 1200 rental Units.
Torrey Hills is also home for a great number of office buildings including the offices for Cardinal Health among others

The local elementary schools are:

Torrey Hills Elementary http://www.dmusd.org/torrey/
Ocean Air Elementary http://www.dmusd.org/oceanair/

Current issues in the community:

Sunrise powerlink project
Torrey Reserve Project

Local Restaurants:

Taste of Italy
Daphne's
Subway
Zip Fusion
Joey's Smokin BBQ
Pick up Stix
Starbucks
Ruth's Chris Steak House

Stores

Vons
Beach Bungalow
Art and framing by Munro Gallery

Banks

Bank of America
Union Bank
Wells Fargo
California Bank and Trust
US Bank

There is also a medical building located inside the Torrey Hills Shopping Plaza.

Upcoming Events:

March 12, 2009 Art and music Festival at Torrey Hills Elementary.

If you want any other information about this area or if you would like me to cover a specific area in future postings please let me know by leaving a comment on this post.

Enjoy your weekend!

Rina Podolsky

Carmel Valley Real Estate Market February-March Snapshot

2009-03-09T16:23:00.000-07:00

Here is the activity in the 92130 area from February 09, 2009 to March 09, 2009.

Active Listings

Total- 291
Attached-86
Detached-205

Pending Listings

Total-67
Attached-36
Detached-31

Sold

Total-25
Attached-8
Detached-17

HIGHEST

Sale Price : $3,400,000
Sale Price per Square Foot: $504
Days On Market: 354

LOWEST

Sale Price: $223,500
Sale Price per Square Foot: $246.48
Days on Market: 0

AVERAGE

Sale Price: $747,906
Price per Square foot: $350.57
Day on Market: 55

New Listings : 108

FORECLOSURE ACTIVITY

There are 155 registered filings with the county out of which

25 Auction stage
101 Preforeclosure stage
29 Bank Owned Properties

Making sense of this numbers requires some in depth analysis. It is important to keep in mind that part of the spike in preforeclosed properties has something to do with the fact that due to the current process to renegotiate a loan requires the property owner to be in default on their mortgage. This also helps when the homeowner is considering selling their home but will need to be approved for a short sale.

It is interesting to see that:

-Out of the 25 properties in the Auction stage of the process, only 6 are detached properties, 1 appears as recently sold and 2 are pending sales.

-Out of the 29 Bank Owned properties, only 8 are detached properties.

-Out of the 101 preforeclosed properties exactly half of them are detached, 6 appear as currently pending.

-Out of the 29 Bank Owned Properties 4 are already pending 2 have recently Sold and at least 15 are not being listed at this point.

The fact that the current inventory has risen can be explained in part because of the natural cycle of the market, as we approach spring more people will list their house for sale. But it is also important to note that there has been a slight decline in the number of properties sold as compared with the 2 previous months. I believe this is due in part to tough lending practices that kept getting tighter. All the recent changes and incentives enacted by congress in recent weeks will be reflected in future closings, we can actually see some positive changes in the number of pending properties that actually went up slightly from previous months.

One more interesting fact that is hard to get data on is the fact that some of the latest sales from what I have seen myself and heard from many top agents, have been multiple offer negotiations.

Please feel free to contact me if you have any questions or if you would like to buy or sell a property in the San Diego area, I will be happy to help.

Best,

Rina Podolsky

858-692-1244

Note: All data has been taken from Sandicor MLS deemed reliable but not guaranteed by author

Architectural Masterpiece in Carmel Valley

2009-03-03T09:35:00.000-08:00

Imagine yourself, relaxing on your upstairs terrace...sipping your favorite wine, and enjoying the beautiful sunset...

This home is a true architectural MASTERPIECE. It has a space for every need and then some. 5 BR, 6.5 BA, Media room, Game Room, Office, Workroom, Studio, Loggia, vanishing edge pool, glass fire pit,and so much more. The quality of the craftsmanship as well as that of the materials used is unsurpassed. This home was built with attention to even the smallest of details. It is located in Carmel Valley on the Del Mar Mesa area, inside a gated community right next to the Penasquitos canyon. The whole downstairs living area opens to the outside for a seamless outside / inside experience. If you would like a private showing contact me or you can join us for our first open house this following Sunday March 4 2009.

Please go to http://www.6667.duckpondlane.com/ for more information and to see a virtual tour of this property.

Best Regards,

Rina Podolsky
Rina@my858realtors.com

Carmel Valley's market Snapshot as of February 24, 2009

2009-02-24T15:47:00.000-08:00

Here is a snapshot of Carmel Valley's Real Estate Market.

ACTIVE

Total Listings 284
Detached 195
Attached/Town/Twin 89

PENDING

Total Listings 59
Detached 26
Attached/Town/Twin 33

SOLD (January 24 -February 24, 2009)

Total Listings 27
Detached 23
Attached/Town/Twin 1

STATISTICS

HIGH

Selling Price $8,250,000.00
Selling Price / Sq Ft $419.90
Selling Price vs. Listing Price 100%
Days on Market 232

LOW

Selling Price $351,000.00
Selling Price / Sq Ft $218.26
Selling Price vs. Listing Price 83%
Days on Market 3

AVERAGE

Selling Price $1,068.86
Selling Price / Sq Ft $327.66
Selling Price vs. Listing Price 94%
Days on Market 68

The information provided is intended to reflect what happened in the market for a brief period of time, it is useful as a analytical tool but it is important to keep in mind that it only reflects a short amount of time. For example last month a home did sell for $611.00 dlls per square foot. As with any data it is important to gather at least 3 months worth of information to get a clearer picture.

If you have any questions or would like to hear more about the local Real Estate Market, please feel free to contact me.

Also if you or someone you know is considering buying, selling or investing in Real Estate please contact me @ rina@my858realtor.com

You can also look for me in Twitter (rinapodolsky), befriend me on Facebook (Rina Pod) and our web site www.my858realtor.com

All information has been pulled from Sandicor MLS, all deemed reliable but not guaranteed.

Newly signed Bill and how it relates to the Housing Market

2009-02-18T08:59:00.000-08:00

On February 13, 2009, The “American Recovery and Reinvestment Act of 2009,” passed the House and later that day the Senate also passed the bill . The President signed the bill on February 17, 2009.
The bill is a $780 billion package, with roughly 35% of the package devoted to tax cuts (mostly for 2009) and the rest to spending intended to occur in 2009 and 2010.
Congress and the President have announced that a finance and housing package (including tax provisions) will be the next “big” initiative, so Congress has by no means finished its work as it affects the housing industry.

Following are some of the key points included in the Bill that affect the housing industry.

Homebuyer Tax Credit – The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
This approved credit is much less that the $15,000 tax credit that the senate had approved but is slightly higher than the previous $7,500. This tax cut did will only be available to first time home buyers and not to all homebuyers as originally hoped for.

FHA, Fannie Mae and Freddie Mac Loan Limits -The bill reinstates last year's 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans. These limits were equal to the greater of 125% of the 2008 local area median home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750. For the few areas where the 2009 limits were higher, the higher limits will apply. In addition, the bill includes language providing the HUD Secretary with the discretion, if warranted, to increase the loan limit for any “sub-area”, i.e.an area smaller than a county. The Secretary's discretion is again limited by the $729,750 cap. These 2009 limits will expire December 31, 2009.

New FHA loan limit for San Diego County is $697,500. To check out the loan limits in any other speceific area go to http://www.realtor.org/wps/wcm/connect/059cbe004d06bea1b71ff7e634190075/government_affairs_2009_limits_arra.pdf?MOD=AJPERES&CACHEID=059cbe004d06bea1b71ff7e634190075

Neighborhood Stabilization – Division A, Title XII of the bill provides $2,000,000,000 in additional funding for the Neighborhood Stabilization Program (NSP). The NSP was created by the Housing and Economic Recovery Act of 2089 (Public Law 110–289) to provide grants through the Community Development Block Grant program (CDBG) to states and localities to address the problems that can be created when whole neighborhoods are decimated by foreclosures. The funds can be used to purchase, manage, repair and resell foreclosed and abandoned properties. In addition, the funds can also be used by states and localities to establish financing methods for the purchase and redevelopment of foreclosed properties. After purchase the homes must be used to assist individuals and families with incomes at or below 120% of area median income. Twenty-five percent of funds must be used for households with incomes at or below 50% of area median income.

For more information on this or any other questions please contact me through this blog.

Go have a great day!

Rina Podolsky
Realtor

Most of this information comes from NAR official website.

Foreclosure rates in San Diego

2009-02-09T12:06:00.000-08:00

I received a link to an interesting foreclosure comparison chart for 2007 to 2008. The numbers show a decrease on both Notices of Default and Foreclosures, they are single digits decreases but a step on the direction we want the economy to go. It is important to understand that at this point it is not clear what is the real cause for this decrease, but given that the economy and consumer confidence shifted for the worse during last year, the most likely explanation is the fact that banks are now required to give longer notices and try to avoid foreclosures, and on the same lines, people are more aware and are trying to renegotiate with banks which at the same time have started to negotiate more with homeowners.
If you would like to see the numbers go to http://v2.sharperagent.com/Boomerang/GetFile.flx?flxnodeco&xml=%3CFile%20userid=%22A7E38D0E-5329-4F86-905F-B0BE2AF64783%22%20storeid=%229017320%22/%3E

If you have any questions please feel free to contact me.

Best,

Rina Podolsky

2009-02-06T10:32:00.000-08:00

On Wednesday night the Senate voted to give a tax break of up to $15,000 to homebuyers
hoping to revitalize the housing industry, this comes as part of President Obama recovery plan
The tax break was adopted without dissent.
As soon as I get more detailed infromation on how this tax break will work I will let all of you know.
The hope is to get many of the on the fence buyers an incentive to go out there and start purchasing.

Have a great Friday!

Rina

Rina Podolsky
www.my858realtor.com

2008 Statistical Data

2009-02-03T13:57:00.000-08:00

I just got some Statistical information for 2008. It was given to me by First American Title Company. Here are some of the numbers

92130

SINGLE FAMILY HOMES

YEAR AVERAGESALES PRICE MEDIAN SALES PRICE NUMBER SOLD

2007 $1,136,065 $949,000 677

2008 $1,089,444 $925,000 530

-4.01 % -2.53 % -21.17%

CONDOS

YEAR AVERAGE SALES PRICE MEDIAN SALES PRICE NUMBER SOLD

2007 $516,192 $500,000 380

2008 $462,371 $459,500 245

-10.43% -8.10 % -35.53%

What I found even more interesting is All the statistical data broken down by Development in the Carmel Valley area. I am not going to go into everyone of them but you can contact me if you want any info on any particular one.

Now...for some important information....anyone know when is the Red Mango store opening in the Del Mar Highlands shopping center? It was about time we got some yogurt places in this area!

I appreciate your comments and questions, please keep the coming

Best,

Rina

Feedback

2009-01-30T12:57:00.000-08:00

My usual topic IS Real Estate, but I just want to ask you...Is there something you would like to read about in this space? What do you look for in a blog? do you want numbers or opinions? or is it something else you would like to know about?

Please share your thoughts with me, I look forward to hearing from you!

Before I go let me just share this article with you...http://money.cnn.com/2009/01/29/news/bailout.fairness.fortune/?postversion=2009012903

Take care,

Realtor Rina

A first Shift in the market

2009-01-14T09:35:00.000-08:00

I recently read an article in the San Diego Business Journal , according to its author Ned Randolph. The market is starting to turn a corner. How he arrives at this conclusion is by looking at what Sandicor (the local MLS system) is reporting as far as sales for the month of december.
He writes "Citing figures provided by Sandicor’s multiple listing services, the Realtors reported that median prices on houses sold in December increased 2.7 percent from the month before to $349,450. Median prices on attached condos sold in December likewise rose 2.6 percent to $200,000. "
This figure is interesting yet many skeptics would find no problem debating it, to begin it is only one months data it is not yet a trend, although it is an important shift in what we were experiencing. What I consider as an important clue that the market is not as week as it is perceived is the second piece of data he addresses and that coincides with what I have been saying and witnessing as a realtor. He writes "The number of units sold, however, rose by more than 60 percent on the year. There were 2,440 existing homes and condos sold in December, compared to 1,499 homes and condos sold in December 2007, the real estate organization reported" In past blogs I had commented on the fact that some areas of the San Diego Real Estate market did have large inventories however many others had inventories that would actually put them in a "sellers market" position if we go by the traditional Buyer/seller market definition. I am not suggesting that we are in a Sellers market yet , not by a long shot, but perhaps we should take a second look at that definition since we are experiencing a very different market.
I always recommend paying attention to changes as small as they may appear at first, this small signals are what keeps you ahead of the curve, if you wait until changes are reported in the mass media at a larger scale, you are too late to react.

Best,

Rina

2008-12-30T23:01:00.000-08:00

I found some interesting information, I don't like predictions very much because they are often mistaken, but taken for what they are, it is an interesting piece of information to have.

Let me start with a brief introduction first.

Most of what I have read for the 2009 San Diego Real Estate Market is not very promising. The forecast is not a sunny one.

2008 was the year that sub prime borrowers and speculators got hurt by the real estate crisis, and San Diego had many of both. Inundating the market with Bank Owned Properties which in turn made the prices fall...continuously. Many experts are predicting that 2009 will be the year that the rest of the population joins the sub prime borrowers and the investors in their sorrows.

Up until now the hardest hit areas had been on the lower end markets that had been plagued with sub prime borrowers.

On Dec 23 Credit Suisse stated that 8 million homes will go into foreclosure from now until 2012. According to Buisnessweek this represents 16% of all US households with a mortgage. One of the major concerns now is that job losses due to the critical economic situation will force previously untouched communities and wealthier communities to start feeling the effects. Making matters a little more complicated, are the Option Arm and Alt-A loan resets that are coming in 2009 which will create a whole new wave of foreclosures coming into the market. All this at a time when according to Housing predictor marks the fourth year for California , where more people are moving out of the State than into it.

WORST MARKETS 2009
2009 Forecast
1. Detroit, MI − 24.3%
2. Riverside, CA − 23.9%
3. Stockton, CA − 23.8%
4. Los Angeles, CA − 21.7%
5. Miami , FL − 21.4%
6. Anaheim, CA − 21.1%
7. Las Vegas , NV− 19.8%
8. Fresno, CA − 19.7%
9. Phoenix, AZ − 19.6%
10. San Diego, CA − 19.5%

BEST MARKETS
2009 Forecast
1. Bloomington, IL 3.6%
2. Grand Junction, CO 3.1%
3.Billings, MT 3.1%
4.Fargo, ND 2.9%
5.Lander, WY 2.3%
6.Trenton, NJ 2.3%
7.Morgantown, WV 2.0%
8.Logan, UT 2.0%
9.Bozeman, MT 1.8%
10.Albany, GA 1.8%
11. Fairmont, WV 1.6%
12.Minot, ND 1.6%
13. Great Falls, MT 1.4%
14.Livingston, MT 1.3%
15. Bismarck, ND 1.3%
16.Missoula, MT 1.2%
17. Grand Forks, ND 1.2%
18. Paducah, KY−1.2%
19.Piedmont, SD −1.5%
20. Lawton, OK −2.1%
21. Black Hills, SD −2.1%
22.Edmond, OK −2.8%
23. Oklahoma City, OK −2.9%
24.Lincoln, NE−3.0%
25. Amarillo, TX −3.9%

I am happy to see 17 areas that have a positive forecast for 2009.

It is important to remeber that when talking about area markets there are different markets within one area, so not all of San Diego will have such a negative year just like not all of it had a terrible 2008. Also, this will be the best year for people who are considering the purchase of a new property. This is the time to start looking for a property and to get qualified for a loan. Lending rates are at historicaly low levels, and opportunities are out there. It is never a good idea to try to time the bottom of the market and from my expirience, the media and analyst are usually months behind the reality of the market, by the time we start hearing some positive news in the media, the bottom has passed and we find ourselves in the middle of an escalating market. Unless you are buying with the idea to flip a house on a short term, if the market slides down a little further after you purchased your home, it should not affect you since you will not be selling it during this time.

I have to underline the importance of understanding that this are only forecasts and nothing else, but it will be interesting to see where next year takes us, with a new president and so many variables coming into play, it will truly be a year that will keep us on our toes!

Questions regarding the economic bailout

2008-12-27T12:39:00.000-08:00

My past three post have been a little heavy on the data, easy on the fluff. That is because for some reason I am one of those people... yes the kind that hunts for information everywhere...we gather it, store it, organize it, and some of us even try to use it later on. Imagine that!

One of my favorite parts of the process is asking questions. Yes, I love to ask questions. People who know me will attest to it and people who don't know me will get to know this fairly quickly.

So here we go. Today I thought instead of giving you information I will ask questions and see what I get... (of course you do know chances are I will go look for those answers later on and blog about them in the future).

Let's talk about the economy and the bailout... So how is it working? No, no like the Dr. Phill question, I mean, what is the process they are following to decide where they are going to allocate the money? why? and when?

Last I heard, part of the sum is going to aid the ailing national automotive industry. I am not well versed in such industry's downturn, and I do understand some of the possible disastrous consequences that would come as a result of the car makers going under, but how is handing money to an ailing company (or two or three), going to prevent them from crashing? How are we solving the problem? or are we just putting it off for a later date at an expensive cost to our taxpayers?

Let's go back to the bailout for a moment, and to a different sector in distress; Mortgages, banks, homeowners. How is the money going to actually help the homeowner with a mortgage that just reset and is pulling them under? will a bank be given money in accordance of the number of homeowners they help? will the banks be required to renegotiate the rates and conditions of homeowners in trouble? What about people who have lost or will loose their job or whose income will take a substantial downturn as a result of this economic hard times making their monthly mortgage payments too large for them? How is the money given to the institutions going to be used, is the idea for it to somehow trickle down to the homeowner who is not making their monthly payments? how?

Right now what I have seen is that affordable loans are only "new" loans. This will benefit people who want to purchase a property, and yes, that will help in part because more properties will sell due to the fact that rates are historically low. It makes more sense to purchase a home instead of renting it. Let's think about this for a moment though... to get qualified for a loan, you have to be a solid candidate and actually be able to afford it. But the people benefiting from this new amazing low rates are people in healthy financial situations, and that is great, if it came hand in hand with a plan for the banks and financial institutions to work things out with current clients that already have a mortgage, even those that are not yet, but might soon be in default.

I do know that I have seen the number of foreclosures go down and that REO agents are getting less listings from the banks, but it is too soon to know if this is because the banks are actually negotiating with the homeowners in trouble or because of the change in procedure that requires the bank to give greater notice.

And one last question that keeps going around in my mind; Where is all this money coming from? Is the government printing more money? using money originally allocated for something else? going into greater foreign debt? what are the consequences this will have down the road?

I am not proposing we do nothing or not have a bailout altogether, I want to be clear of what is being done, how it will get done, what it will accomplish and what will be the price or consequence of the actions we are taking today.

One thing is clear for me, the pendulum has swung , this situation started when we all became to trusting, we trusted in the asset managers to know what they were buying and selling, we trusted in the company's CEO's CFO's and management to be honorable people working for the best interest of the company they represented, we trusted mortgages were being given to people who could afford them and that were told what it was that they were buying into with all this out of the box "creative" new products, we trusted. Now, it is hard to get that trust back. I can't trust that the same people who allowed this situation to advanced to the point that it did will actually get us out of it. Will they start looking after Country, Company and people's well being before their own, or are they still trying to advance their personal growth and financial gain? how can we trust when AIG gets a "helping hand" and the first thing they do is have a "relaxing" $400,000.00 dollar spa outing? how many people could they have helped with that Spa package?

Just wondering...

Any thoughts on any of this are welcome and encouraged.

What is the current inventory of homes in San Diego

2008-12-25T21:44:00.000-08:00

One question that often comes up when talking about the current condition of the Real Estate market, is the Absorption Rate. The absorption rate can be defined as the time it would take the current inventory of homes to sell given the average selling pace of the past (typically six months, averaged).
The reason we do this is because it helps us to track trends in the market and thus figure out where it is heading.
However, absorption rate is NOT an exact science. Figuring it is based on the premise that one will be looking for a TREND. It is advised to consistently do the numbers each month, to be able to track a trend.
So... Absorption Rate (AR) = Number of Homes LISTED divided by Average number of homes SOLD Per Month over the past six months.

I did this exercise for 5 different areas today.* Here is what I have found:
1- Chula Vista

ACTIVE: 1453
SOLD:**278.50
AR:5.21

2-Rancho Santa Fe

ACTIVE: 254
SOLD:** 9.6
AR: 26.45

3-Carmel Valley

ACTIVE: 215
SOLD:**52.66
AR: 4.08

4-Downtown San Diego

ACTIVE: 570
SOLD:**34
AR: 16.76

5-Oceanside

ACTIVE:1090
SOLD:**232.83
AR: 4.68

Doing the Same excessive for San Diego as a whole we get:

ACTIVE: 15,945
SOLD:**2758.66
AR:5.78

In closing, we can see that we have areas with a very high AR while others are surprisingly low for a market that is perceived as a "Buyers Market". Typically speaking, a Buyer’s market exists when the absorption rate for homes exceeds six months; a Seller’s market exists when the absorption rate is fewer than six months, although that definition varies depending the source.

Once again, Happy Holidays and let me know if you would like any topic to be addressed in future posts.

*All data taken from MLS. This information might not include all listings available and sales recorded at the county.

**Average monthly Sales from past 6 months.

Rina Podolsky

Area specific housing data for San Diego

2008-12-20T23:25:00.000-08:00

As promised yesterday, I have more specific data for you.

I found an interesting tidbit of information I wanted to share with everyone;
According to Professor Pigginton,the single family median price per square foot was down a gruesome 6.1% between October and November which indicates a market still declining, however, he also mentions that the home inventory in San Diego has shrunk by 22% from where it was a year ago, this is relevant because it is one of the first signs of a market beginning to turn.

Now lets go ahead and look at some data for specific areas as of today:

ZIP ACTIVE PENDING SOLD* SOLD**
92101....573............109.........55...........669
91913....359............217..........86...........752
91914....179.............102.........40..........293
91911.....335............198.........49..........560
92057....406............184.........89..........975
92014....168.............11...........5 1..........33
92024....256............55...........14.........428
92037....408............66............27........497
92067....257.............13............6..........123
92130....219............63............30........569

This is only a very small sample of areas in the county, if there is any one area you would like to hear in my future postings, let me know.

For now I leave you with some questions. How do you feel about the government making this massive monetary commitments in order to bail out different industries? Do you know where this money is coming from? What does it mean for our future economy?

*Properties sold between the dates of November 20,2008 and December 20,2008
**Properties sold between January 1st,2008 and December 20, 2008

All data provided by local MLS

Best regards,

Realtor Rina

So...How is the Real estate Market???

2008-12-18T20:45:00.000-08:00

This is a question I hear every day, and in all honesty...there is no simple answer.
The reality is that it all depends on why you are asking? it is not that the facts change, it is that the focus you have while looking at those facts creates a whole different explanation.

And as if that was not enough...we cannot talk about a Real Estate market in San Diego in general and expect to have an accurate picture of all areas. You have to clearly define what area in San Diego county you are interested in. If you look at Chula Vista it is an entire different picture than Encinitas for example.

Now having said that, let's take a look at certain current conditions that do affect the market in general.

Even though there has been talk about the banks shifting their aim from foreclosing on faulty loans to attempting to work things out and renegotiating with the homeowners who have this loans, it takes time...unfortunately for those people already going through the process of being foreclosed upon, this shift has come too little to late. And we have yet to hear from this lenders, who will be able to renegotiate, under what terms and for how long. Until this does not come to fruition we are not certain how it will affect the market

New loans are hard to qualify for and are taking much longer than expected which in turn is causing homes to stay on the market for longer periods of time and escrows to take much longer than before and in some cases to even fall through. So even though rates are at a very attractive level right now, that means nothing unless you can qualify for one, and then actually get funded.

Most sellers are more sensitive to the conditions of the current market that what they were let's say one year ago, which in turn translates to more offers being accepted and more homes going into escrow. From our experience, generally speaking if a home is priced correctly and marketed correctly it will get sold, it is just taking longer.

Now, interestingly enough, for the first time in months I have found ourselves in multiple offer situations, it might have been a coincidence and it has not happened consistently enough for me to consider it a trend, but it is a start.

So in closing, we are in a challenging market but not everything is looking grim, and I actually do believe we are reaching a turning point.

In one of my next postings I will address specific areas and data to give you some facts and numbers.

If you have any specific areas of San Diego county you would like me to address please let me know and I will do so.

Best regards for now!