Real Estate News

Timing is Everything in Real Estate

As a La Jolla Realtor when I talk to prospective clients the first question that a seller will ask me is, how long will it take for my house to sell? A buyer might ask, do you think the prices of homes are going to go lower?  The answers to these questions are never easy because there are many factors that can contribute.  Today I’m writing about timing based on the current market and consumer requirements.

 I just sold a home in La Jolla that took my seller four years to decide to sell.  I sold the house in two weeks with multiple offers!! Why? I suggest it was all in the timing. I was able to price the house right for the time or market, and my seller did everything I suggested to get the house sold. He repainted the exterior and interior, replaced the old carpet with new and added new landscaping in the yard. Even in this challenging market I was able to sell his house quickly. True, if he had sold his home four years ago his sale price would have been higher but my seller wasn’t ready, the timing for him was not right.

 Another example of the right timing …  A man and his wife would go out every Sunday and check out the open houses never finding anything or committing to working with an agent.  I met them at an open house and we talked about timing, market conditions in La Jolla, and the fact that NOW is a great time to capitalize on both lower home prices and lower interest rates. I emphasized to them that now is a great time to be a buyer. I sold them a house three weeks later. 

 As I have mentioned before, this isn’t the market in which to “test” your home. You are either a motivated seller, or you are not. What do you want to be? Here are your choices: you are going to “make” the market, “meet” the market or “chase” the market. Which one will it be? The bottom line in selling a house is all about the timing!

 So your timing on selling or buying a home could be now or later but when timing is right please feel free to give me a call or visit my website and I will be glad to help you with your real estate transactions!

First half of 2010 San Diego County’s Notice of Defaults are down 41%!

If you compare the first half of 2010 to same period last year, this San Diego County chart shows that Notice of Defaults are down 41%!  This means banks are getting better at processing short sales,  and  reflects the banks willingness to try to work things out with the homeowner, through either loan modification or short sales. The chart also shows that the change in the Foreclosure rate is -1% in the first half of 2010. This low rate may show that we have reach or are very close to our bottom. Another thought might be, since Southern California went into the housing recession earlier than other places, we may be  reaching the bottom a little faster and recovering a bit better than harder hit markets.  

So don’t miss your chance to invest in La Jolla Real Estate now! Interest rates are low and there are great deals out there.  Give me a call at 619.980.2738 or check my website!

La Jolla Real Estate Market Trends and Conditions….

What’s Happening in La Jolla’s Real Estate Market?  Here’s a quick snap shot of how La Jolla’s Real Estate market is trending?

Last week the median list price in La Jolla, CA 92037 was $2,422,500. The 296 properties have been on the market for an average of 169 days. So what does this mean?  In terms of supply and demand the market is getting cooler, since properties are staying on the market longer and more homes are being listed relative to the demand of sales. However, in the past weeks prices are moving higher.  But since the index still technically shows a Buyer’s market, the higher price trend can be a result of improved quality (newer, larger homes), that are being listed. If the demand trend continues, expect prices to keep marching upward, especially once we see a Seller’s Market.

As you can see the price trend in La Jolla continued its uptrend this past week.  So if you are a buyer and are thinking of moving to La Jolla now is a good time to make the move! Interests rates are still at historical lows so don’t miss your opportunity to move to La Jolla and live in your dream home.

If you need a current market analysis or have real estate questions please give me a call 619-980-2738 or visit my website

New Rules for underwriting loans for Borrower with prior Foreclosure!

Fannie Mae just announced the new rule SEL-2010-05. 

 As if there is not enough stress for a borrower to get a mortgage, yesterday FannieMae set new guidelines for a borrower with a prior foreclosure.   “In Announcement SEL-2010-05, Underwriting Borrowers with a Prior Preforeclosure Sale or Deed-in-Lieu of Foreclosure, Fannie Mae announced changes to the policies regarding the amount of time that must elapse after a borrower experiences a preforeclosure event (preforeclosure sale, short sale, and deed-in-lieu of foreclosure). The changes highlighted the importance of borrowers working with their servicers to avoid foreclosure.”

 “As a follow-up to that Announcement, Fannie Mae is now modifying the waiting period that must elapse before a borrower is eligible for a new mortgage loan after a foreclosure. The combination of the waiting period policies for foreclosures and preforeclosure events continue to favor borrowers who work with their servicers to avoid foreclosure by allowing these borrowers to be eligible for a future Fannie Mae loan in a shorter period of time”.  This Announcement describes the policy changes in detail. The changes will be reflected in the Selling Guide, B3-5.3-07, Significant Derogatory Credit Events – Waiting Periods and Reestablishing Credit, when it is updated on June 30, 2010.

Waiting Period after a Foreclosure — Currently, the waiting period that must elapse after a borrower experiences a foreclosure is seven years. However, Fannie Mae allows a shorter time period – five years – if certain additional requirements are met (e.g., minimum down payment and credit score, and occupancy requirements). These requirements are being modified to remove the five year option. Unless the foreclosure was the result of documented extenuating circumstances, which only requires a three-year waiting period (with additional requirements), all borrowers will now be required to meet a seven-year waiting period after a prior foreclosure to be eligible for a new mortgage loan eligible for sale to Fannie Mae.

Here is a chart that will help you understand the new guidelines: 

Effective Date – This policy is effective for manually underwritten mortgage loans with application dates beginning October 1, 2010.

 Summary – All Waiting Period Requirements

This chart summarizes the waiting period requirements for all significant derogatory credit events. For additional information see Selling Guide B3-5.3-07 for complete details.

(All information via FannieMae Selling Guide).  Click on the link below to find a complete copy of the Sellers Guide and please give me a call at 619.980.2738 if I can help with questions on this or any other Real Estate issue you might have!

http://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2010/sel1006.pdf

La Jolla’s March Foreclosure Comparison is Starting to Rise!

We have been hearing rumors that foreclosures will be increasing in the higher end market.

For the first time in three months, you can see from this San Diego County chart, that foreclosures are on the rise! If you compare Notice of Defaults to Trustee Deeds, foreclosures are up 53%! What does this all mean? It means that higher end homeowners are finding themselves under water in their homes, and more short sales are going to be coming on market. If you are still not sure it’s a good time to buy the chart speaks for itself! Now could be the best time to invest in La Jolla Real Estate, there are going to be more good buys out there!

Thinking of Making an Offer on a Foreclosure or Short-Sale?

Short-Sale Incentives Start April 5th  …

A new federal program, Home Affordable Foreclosure Alternatives, aims to make the short sale process easier for buyers and sellers.  Starting April 5^th the federal government will begin providing financial incentives to lenders who accept short sales.  Banks who participate in HAFA will also have to follow new rules to streamline the short sale process.

The new rules will require banks to order a Broker Price Opinion, a suggestion of what the home is worth, before a house is listed for sale.  Banks then need to inform sellers the minimum they are willing to accept from a sale.  If a buyer offers to purchase the home at or above the banks’ minimum, banks will be required to accept the offer within 10 days of submission.

As with most government programs, not all homes and sellers are eligible for the program.  It is also important to note that participation in HAFA is not mandatory.  It is unknown how effective the program will be, however, it is a step in making the short sale process easier for sellers and buyers.

~Information from the Wall Street Journal and Realtor.org~

Governor Schwarzenegger Signs California’s $200 Million Homebuyer Tax Credit Legislation into Law

Governor Arnold Schwarzenegger signs AB 183 which provides $200 million for home buyer tax credits, allocating $100 million for qualified first-time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes.

The eligible taxpayer who purchases a qualified personal residence on or after May 1, 2010, and on or before December 31, 2010, or who purchases a qualified principal residence on or after December 31, 2010, and before Aug. 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010, will be able to take the allowed tax credit. The credit is equal to the lesser of 5 percent of the purchase price or $10,000, in equal installments over three consecutive years. Under AB 183, purchasers will be required to live in the home for at least two years or forfeit the credit (i.e., repay it to the state).

The signing of AB183 will give homebuyers another great incentive to purchase a home. Now there is no reason to wait! If you need any additional real estate information please give me a call 619-980-2738 or visit my wbsite.

Check out La Jolla’s Foreclosure Comparison from February 2009 to February 2010

Recently I have seen article after article on the internet and in print media about the “New wave of foreclosures threatening the housing market.”

I thought you might be interested to see the statistics on foreclosure rates in La Jolla where you will find a different story.  In La Jolla the statistics show a continued drop in foreclosures. When you compare Feb 2009 to Feb 2010 notices of default have dropped 37% and actual foreclosures 16%. So what does this all mean? As of right now La Jolla’s foreclosure rates are lower than other cities in California. This shows that that old adage still rings true … location, location, location … location is one of the most important factors in deciding where to buy.

Don’t miss your opportunity to buy a home in La Jolla! Prices have never been better! If I can help with any Real Estate questions or information give me a call at 619.980.2738 or check out my website.

Important … pick the right closing date for your home sale!

The Sale has finally come together. The back and forth of discussions and counters are completed. On the day you sign and open escrow you might be tempted to count forward 30 or 45 days, whatever the determined number of days of your escrow, and pick that date for your closing.  As it turns out once you open escrow it is always important to choose the right closing date so you can close your escrow on time! In San Diego here are a list of days that the San Diego County Recorder’s office is closed. So make sure your escrow is not going to be closing on any of these days. Also remember with the new lender guidelines once you sign your loan documents you have to wait three days to fund, so watch the dates!  Please give me a call if I can help with any information on escrow dates or other Real Estate issues at 619.980.2738

 

INFORMATION PROVIDED BY CALIFORNIA TITLE COMPANY.

Top 10 Hurdles to Avoid During a Short Sale Transaction!

If you are in the process of buying a home that is a short sale here are 10 hurdles to avoid! These problems could affect your closing on time or even at all!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Information provided by California Title Company.  For more information on short sales or other Real Estate news please feel free to give me a call at 619.980.2738 or visit my website.

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