San Diego Home Prices Soar, watch video!!

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Luxury Home Prices Rise, La Mesa Sees $1.3M Sale

The average price of a luxury home in San Diego County, including homes in La Mesa, rose 2.8 percent in the first quarter of this year, compared to the first three months of last year, according to a study released Wednesday.

Bedrooms:3 beds
Bathrooms:2.5 baths
Single Family:3,938 sq ft
Lot:23,522 sq ft
Year Built:2001
Last Sold:Apr 2013 for $1,300,000

The cost was also up 3.6 percent over the previous quarter, which covered the final three months of 2012, according to the First Republic Prestige Home Index by First Republic Bank.

The average cost of a luxury home in the San Diego region in the first quarter of this year was $1.7 million, the highest since the end of 2010, according to the index. According to Zillow, the highest priced home sold in La Mesa this year went for $1.3 million (10139 Heavenly Way). That compares to $2.1 million in Los Angeles and $2.8 million in San Francisco.

Written by City News Service

For more information on La Mesa Real Estate please contact me here - Joe OMeara

San Diego Home Prices Jump Up!!!

San Diego home prices have reached their highest level in more than 4 1/2 years, said the S&P/Case-Shiller Home Price Index on Tuesday.

The local market's index came in at 167.84 in March, the highest since August 2008, according to the monthly report, which has a two-month lag. March prices are up 12 percent from the same time a year ago. That marks the second double-digit annual increase for two consecutive months.

All 20 U.S. metros featured in the report posted year-over-year increases for the third straight month, the report said. A dozen of those 20 areas recorded double-digit annual growth. When looking at the price performance for all 20 metros together, analysts saw the best year-over-year returns in seven years.

Article on UT- San Diego!

For more information on San Diego Homes please contact me here! - Joe OMeara

What if Mortgage Rates shoot up?- San Diego Real Estate

Market watchers are speculating when the Fed will start to scale back its mega-bond buying program called quantitative easing, or QE. The economic stimulus has helped keep U.S. mortgage rates at or near record lows, sparking buyer demand and refinancing activity. Would a wind-down of the program pose a threat to the housing recovery?

Murtaza Baxamusa — Gerald McClard / Union-Tribune staff

• Murtaza Baxamusa, directs planning and development for the Family Housing Corporation, of the San Diego Building Trades in Mission Valley: Yes. Federal stimulus successfully drove down interest rates below 4 percent for the first time ever, making homes affordable for new buyers and those who refinanced. Loans are cheaper now than in the early 1950s. Withdrawal of this stimulus would gradually inflate interest rates to their 20-year average of 6.5 percent for a 30-year fixed mortgage. San Diego still ranks among the worst in the nation in housing affordability. Prices are accelerating, and inventories dwindling. An increase in interest rates could precipitate another housing crisis in five years if income growth does not keep pace with monthly mortgage payments.

Michael Lea — Peggy Peattie / Union-Tribune staff

• Michael Lea, director of the Corky McMillin Center for Real Estate at San Diego State University: Under its quantitative-easing program, the Fed has been buying long-term Treasury and mortgage-backed securities. This strategy has been successful in keeping long-term rates low, stimulating housing demand and mortgage refinance as well as the stock market. It is time to end it. The housing market is no longer in need of life support and the risks of continuing the program are large. There is a risk of creating housing and stock-market bubbles. And continuing the policy makes the inevitable adjustment to market determined rates more difficult.

Marco Sessa. Photo courtesy of Marco Sessa.

• Marco Sessa, chairman of the Building Industry Association of San Diego County and senior vice president of Sudberry Properties : Yes. Just how much is hard to say, particularly for supply- constrained markets like San Diego’s. Everyone expects that a wind-down of the Fed’s quantitative-easing program will result in higher interest rates. Higher interest rates obviously deter homeownership, but they also increase the cost of bringing homes to market. Both are bad for the housing recovery. However, there is a local housing shortage, which puts upward pressure on home values. This offsets the negative effect of increasing interest rates. Bottom line: If you didn’t buy in the last 12 months, there’s no time like the present – if you can find one.

Robert Vallera — Gerald McClard / Union-Tribune staff

• Robert Vallera, senior vice president of Voit Real Estate Services in San Diego: Yes, there is a threat, but no one knows how this will unfold. Like a cheating athlete, the market is juiced on low interest rates. When the quantitative easing tapers off, rising interest rates will create a drag on home values. San Diego’s median home price is now 6.7 times the median income, well above the historic average. It’s possible that household incomes might not grow quickly enough to offset rising mortgage rates and successfully support current valuations. Conversely, with housing in short supply here, a gradual rise in rates could play out far more smoothly than a sudden rate shock.

Kurt Wannebo — Gerald McClard / Union-Tribune staff

•Kurt Wannebo, real estate broker and CEO of San Diego Real Estate and Investments: No. Our housing recovery has been based on a multitude of factors including low inventory, programs that help struggling homeowners, public perception, overseas money and low interest rates. A slight increase in interest rates will slow down price increases but will not be extremely threatening to our recovery. However, it could slow the speed at which we are seeing things change.

This post was compiled by reporter Lily Leung
Provided by UT- San Diego

San Diego Realtor talks about recovering market

Housing Recovery Accelerating, As List Price And Inventory Increase

Realtor.com released its April data showing that the U.S. housing market is on its way to a broad-based recovery, an accelerated trend since March. The home-buying season shifted into high gear last month as inventory and home list prices on Realtor.com® increased 4.12 percent and 2.63 percent, month over month, respectively. As of April, homes are on the market nationwide approximately 81 days—a

decrease of nearly 11 percent since April 2012—highlighting that while new homes are entering the market, they are not available for long.

Despite the increase in inventory month over month, nationwide inventory declined on an annual basis in all but 11 of the 146 markets Realtor.com® monitors. Approximately 36 markets registered a decrease of listings by 20 percent or more, still highlighting near records lows of available homes.

Approximately 37 markets experienced a decline in list price since last year, a figure that has been improving throughout the home-buying season. The number of markets throughout the nation experiencing a steady or slight decline in median list prices is decreasing throughout the home-buying season, another positive signal for the overall housing market recovery.

Read more here!

If you have any questions on your local market please call me- Joe OMeara

What goes goes with you when you sell your home!

When you are getting ready to sell one of the things you will need to consider is what stays in the home and what goes. There are certain things that are generally considered to be part of the home and others which are often negotiable. Before you put the home up for sale you will want to figure out what things you absolutely want to take with you and what might be up for discussion. If you know where you will be moving to next then you are already one step ahead of the game because you know what is in your new place. If not, or if you are moving far away, it can be trickier to decide what is worth moving or putting in storage and what is worth offering to the buyers of your home.

Generally things that are not attached go with the seller. If there are things you are absolutely certain you want to take with you that are attached, make sure you tell your Realtor and so that they are included in the listing and you don’t end up breaking any potential buyer’s heart.

Some people, especially if they are downsizing or moving far away, may choose to include the furniture as part of the package. This can be tricky because furniture will not factor into an appraisal value so if it adds significant numbers to the sale price then the sale may need to be done separately. These items can also be included as a value add for the potential buyer.

There are several areas which generally feature in this type of discussion:

Lighting: Lighting fixtures are often something that people are attached to because they often reflect personal style. In general things that are attached to the home such as lighting fixtures are generally considered to be part of the home. For example, when I bought my condo, the owners wanted to take their crystal chandelier in the dining room with them. For me this wasn’t an issue, the chandelier wasn’t my style and I was happy with having the chance to replace it with something else. However if I hadn’t known this in advance and I had my heart set on the way the dining room looked with the chandelier it could have been an issue. Fixtures are to remain in the home unless the seller explicitly stated the item is not to be included in the sale. The seller also needs ensure that the item be removed without damage to the home. Lamps are moveable items and are considered personal items that can be claimed by the seller when they vacate the home.

Appliances: Appliances are often an area where the buyer and seller can negotiate. In some cases, the buyer may actually prefer that the seller remove appliances because they have their own. Other times, the seller may be ready to take the appliances but could use them as an incentive to get the buyer to pay the list price because the buyer won’t have to pay for new appliances. If you are absolutely certain that you want to take the appliances with you make sure your agent notes that. If you are willing to negotiate let your agent know that too. Most appliances are moveable items that the seller would normally be allowed to remove from the home. Moveable items are considered personal items or possessions of the seller.

Landscaping: Plants, shrubs and trees are items that are affixed to the property and will remain with the home however if you have container gardens or perhaps flower-filled urns on the front porch those can be negotiable. Backyard equipment, such as lawn chairs, tables, swings and grills, are all considered personal items. The swing set may get a bit tricky because it can be claimed that it is attached to the ground in some cases. The seller may often be very willing to sell all of the backyard items for a price.

Window Treatments: Window treatments are another area that can be negotiated. Often window treatments were bought to fit the specific size and shape of the windows and so the seller may not be interested in taking them to a new home. If you are planning to leave the window treatments behind be sure to let your agent know so that it can be added to the listing. This is often a great selling point to use because it means the person can move in and not have to worry about privacy.

See article on Realtor.com
Susan Wellish contributed to the post.

Santee, CA Market Overview

The median sales price for homes in Santee CA for Feb 13 to Apr 13 was $330,000. This represents an increase of 4.8%, or $15,000, compared to the prior quarter and an increase of 16.4% compared to the prior year. Sales prices have appreciated 8.8% over the last 5 years in Santee. The average listing price for Santee homes for sale on Trulia was $310,846 for the week ending May 08, which represents a decline of 0.9%, or $2,960, compared to the prior week and an increase of 2.2%, or $6,609, compared to the week ending Apr 17. Average price per square foot for Santee CA was $226, an increase of 15.3% compared to the same period last year. Popular neighborhoods in Santee include Sky Ranch, Riverview Office Park, Riverwalk, and Mission View Estates. Contact me Here if you have any questions or would like to chat about the market in your area!

To see more market trends go Here!

Mortgage Rates Rise

Mortgage rates rose this week, with a widely watched survey reporting that lenders were offering 30-year fixed-rate loans at an average of 3.51%, up from a near-record low of 3.35% two weeks ago.

The survey, released Thursday by mortgage financier Freddie Mac, show rates following U.S. Treasury bond yields higher on signs of a stronger economy.

The yield on the benchmark 10-year Treasury note has risen about a quarter of a percentage point over the last two weeks as investors optimistic about the economy have poured money into stocks and out of bonds.

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

To read more click Here.

Looking at An FHA Loan? You may want to read this...

Looking to refinance or buy a home using an FHA loan? June 3 is a deadline you may want to mark on your calendar. After June 3, homeowners with an FHA loan can no longer cancel their mortgage insurance premiums once the outstanding principle balance of the loan reaches 78% of the original balance. This was traditionally a major savings for owners as the loan continued.

Loans where the starting loan balance is higher than 90% of its appraised value will require that the owner pay the premiums for the life of the loan. If the loan to ratio value starts at 90% or less then the borrower must pay mortgage insurance premium payments for 11 years even if the loan drops under 78% of the original balance.

The FHA raised the annual mortgage insurance premium on most loans that have a case number starting with April 1. On most FHA loans, the premium will increase by 0.10 percentage point or $100 per year for each $100,000 in loan amount. For jumbo loans greater than $625,000 with a term longer than 15 years, the increase will be 0.05 percentage point or $50 per year for each $100,000 loan amount. Writing about the changes, Best Rate Home Loans showed the impact of this using a hypothetical Florida FHA borrower. That borrower is paying a $50 MIP per month on a 30-year loan. If that person gets an FHA case number before June 3, 2013, it might take them 281 months to reach that 78 percent mark where their monthly MIP could then be dropped. If that person did not get a case number prior to June 3, they might have to pay an MIP for all 360 months of a 30-year loan, or 79 months more than if they had acted before June 3. Over the life of the loan that $50 a month becomes $3,950. These increases don’t apply if a borrower refinances an existing FHA loan endorsed on or before May 31, 2009.

The changes come as FHA loans have been heating up. Interest rates have been low and lenders have funded $233 billion in mortgages, a 22% increase from the previous year. The FHA is making the decision because their reserves are running low. It is experiencing the after effects of bad loans made during the housing crisis and has reserves in the red. These moves are deemed necessary to rebuild the Mutual Mortgage Insurance Fund.

To find out more call me!

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San Diego Home Prices Hit a 5-year High

San Diego County home prices have hit the highest level in five years, as distressed sales continue to fall and mortgage rates are still near record lows.

The median price of a home sold in April rose to $400,000, up 21 percent from the same time a year ago, reported San Diego-based real estate monitor DataQuick on Tuesday.

Last month's median price matched the median in April 2008, and the all-time peak was $517,500 in November 2005. Sales, which remain brisk, rose 7 percent from a year ago to 3,792.

The county has seen double-digit annual increases for the past eight months, prompting some concerns of a lead-up to another housing bubble.

Michael Lea, a real estate economist at San Diego State University, believes those fears are overblown. Continued hikes in home prices are due largely to a shift from a distressed market, which brought consumers heavily discounted deals, to a more traditional market. Short sales -- deals that let borrowers sell their homes for less than what they owe -- are also declining.

Properties that were lost to foreclosure in the past year and resold in April made up 10 percent of total home resales, the lowest share in six years, DataQuick numbers show. They peaked at 55 percent in January 2009. The median price at that time was $280,000.

"The market has seen a significant decline in the number of lower-priced transactions, in part because foreclosures and short sales are petering out," Lea said.

Article provided by UT San Diego

Spring Valley, CA Had the Highest Home Sales

Spring Valley's 91977 was among the ZIP codes in San Diego County with the highest number of home sales last month, the Greater San Diego Association of Realtors reported this week.

The median price of single-family homes in San Diego County rose 5 in percent March to $432,000, and the first-quarter median price was up 15 percent compared to the same quarter in 2012.

The median price of condominiums and townhomes rose 14 percent in March to $285,000. Compared to the the first-quarter of 2012, the price was up 30, according to the Greater San Diego Association of Realtors.     

The most expensive home listed last month was a 5-bedroom, 6,375-square- foot in La Jolla home that sold for $12 million, according to the group.     

Linda Lee, president of the association's board, said she anticipated improving conditions "with interest rates hovering at historic lows."     

Housing inventory was estimated at 45 days.     

Single-family homes were up 39 percent in March compared to February, and were up by 10 percent compared to March 2012.

The following Zip codes had the highest numbers of sales in last month:

92128/Rancho Bernardo, 62
92028/Fallbrook, 57
92009/Carlsbad, 53
91977/Spring Valley,50
92115/College Grove, 49
and 92065/Ramona, 48

Contact me for more information!- Joe O'Meara

Visit Patch.com for this article!

San Diego Realtor talks about "Flash Sales"

SAN DIEGO – If you’re looking to sell your home the timing could not be better, as home prices are up in San Diego and demand is at its highest.


Joe Bertocchini of the University of San Diego’s Burnham-Moores Center for Real Estate said the lack of supply in the current market is a contributing factor.  The acceleration in the housing market has coined has even coined the term “Flash Sales.”

“We’re seeing homes that are flying off the shelves so to speak, in matter of hours,” said Bertocchini.  “Sometimes even within a day, less than 24 hours. We’re pretty stunned by what’s going on out there.”


The housing boom is mainly being fueled by foreign investors with cash ready to spend, according to Bertocchini.

“It’s good investment. They see the value, they see appreciation for future years and they want to be a part of it,” said Bertocchini.

Joseph Lerner is a partner with Keller Williams Realty in Mission Valley said he had a client from China who just bought a Rancho Penasquitos home without seeing it.

“We’re doing more Skype now so people can actually see what you look like.  They buy the properties sight unseen,” Lerner said. “Within the week, they’re going to see three, four, five, 10 offers.  I had one agent who had 31 offers last week.”

Lucy and James Sholar are getting ready to sell their home after living there for four years.

“We bought it when it was a good time to buy, now it’s a good time to sell it,” said James Sholar.

“I really loved that home, but I’m excited to go somewhere new,” she said. “I’m hoping we get something good out of it.”

-Article provided by UT- San Diego

Local San Diego Realtor wishes you a Happy Mother's Day!

Mother's Day...the one day a year we try to pay our moms back for everything they've given us over a lifetime.

Happy Mother's Day to all the Mothers, Wives, and Grandmothers out there! Sunday is your day & I hope it is a great one.

Here is some information on San Diego Market Trends.

Spring Valley, CA- Real Estate SnapShot

 

Homeowners' Insurance Discounts

Homeowners insurance isn't just required for your mortgage  it's an important part of a plan to keep you and your home safe. Generally homeowners insurance cover damage from fire, theft, and more... Luckily there are some ways you can improve your home that not only may boost resale value but can lower you homeowner insurance rates.

1) Home Security- If you live in a gated community, have a security system, or even deal-bolt locks, this can be a discount for some providers.

2) Fire Safety- Installation of smoke detectors and carbon monoxide detectors can look good to your provider.

3) Home Maintenance- You may be able to qualify got an age wiring discount depending on how old your wiring is. New pipes? Well that can also qualify you for a discount. If your home was recently renovated or is newer that may entitle you to a discount.

4) Policyholder Discounts- If you have not file a claim in the last 10 years you can often get as much as a 20% reduction. If you are older and retired you may get a discount. 

Quick El Cajon, CA Real Estate Overview

Average price per square foot for El Cajon CA was $206, a decrease of 0.5% compared to the same period last year. The median sales price for home in El Cajon CA for Feb 13 to Apr 13 was $310,000 based on 447 home sales. Compared to the same period one year ago, the median home sales price increased 19.2%, or $50,000, and the number of home sales decreased 11.1%. There are currently 441 resale and new homes in El Cajon, as well as 471 home in the pre-foreclosure  auction, or bank-owned stages of the foreclosure process. The average listing price for homes for sale in El Cajon CA was $341,589 for the week ending May 01, which represents an increase of 0.7%, or $2,295, compared to the prior week.

Information provided by Trulia.

How to be the most attractive home buyer

Many houses are receiving multiple offers as home prices continue to recover and interest rates are at record low. Buyers need to stand out to seal the deal. Here are a few tips on how to do so:

Be prepared. Since markets are moving fast, housing experts recommend buyers have their loan pre approved and their down payment ready before starting their search.

Have your game face on. Multiple offers are the norm, so buyers need to be ready to compete. The longer the negotiations, the bigger the chance a buyer could lose out to someone else who made a better offer.

Always be reasonable. Buyers also must be reasonable without being difficult because until an offer is signed, sealed, and delivered, other buyers can and probably already have sent back up offers.

Do not cut corners. Even though it's a competitive market, buyers should maintain their budget. Experts also warn that buyers shouldn't skip things like the home inspection.

Time is of the essence. Since time isn't on the buyers side, buyers who spot a good deal shouldn't wait days to make an offer. With that said, buyers should be doing their homework in the area they are looking to buy.

Cash is king. In this market, the more cash a buyer has, the more appealing they are as a buyer. Putting down 20 percent or more also make a buyer look more finically stable and gives seller comfort that the buyer qualifies. 

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San Diego County Small-business Sales Grow

More of San Diego County's small businesses are changing hands in 2013, according to figures from BizBen.com, a leading business listing website.

January's 132 business transactions reflected a 40 percent increase over a year ago; February transactions showed a 20 percent increase, and March's transactions rose 27 percent. April was the first month that the number of sales dropped from the previous year's: 93, compared to 99 in 2012.

A lively market in business transfers is important, says BizBen.com founder and president Peter Siegel, especially as existing business owners age and retire. This year's early numbers, while positive, don't reflect a full recovery, he said.

"While it's encouraging to see improvement in the business for sale marketplace in much of California and in San Diego County, we need a growth trend that shows every month recording more sales this year than in the year before."

The slow recovery is thanks to the difficulty of accessing the capital needed to complete deals, he said. Many buyers are hesitant to commit to buying a company he added, because they are uncertain about the future of the economy.


Article by Katherine Poythress

BUSINESS- UT San Diego


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Spring Valley, CA Market Trends

As an agent who lives in the East San Diego County area, I like to keep up on what's going in the market! The median sales price for homes in Spring Valley CA for Jan 13 to Mar 13 was $277,000. This represents a decline of 3.7%, or $10,500, compared to the prior quarter and an increase of 17.9% compared to the prior year. Sales prices have depreciated 11.9% over the last 5 years in Spring Valley. The average listing price for Spring Valley homes for sale on Trulia was $266,394 for the week ending Apr 24, which represents a decline of 1.3%, or $3,381, compared to the prior week and a decline of 0.6%, or $1,603, compared to the week ending Apr 03. Average price per square foot for Spring Valley CA was $180, an increase of 11.8% compared to the same period last year.

Please visit my website with any questions! www.joeomeara.com