FIRST TIME BUYER AND MOVE UP OPPORTUNITY…

San Diego really started to see a slide in real estate values in mid 2005. The slide has continued to this day but if you watch inventory and statistics closely a case can be made that we may be at or near the bottom.

The slide while painful for many does have a silver lining. Affordability in San Diego has improved for the first time in at least a decade and a half. What this means is that many of our citizens can now really afford to consider buying their own home.

You might say that many people did this and got into trouble during the run up in values of the late 1990’s and early 2000’s. I agree with you. But there is a difference this time around, prices and interest rates coupled with reasonable and honest loan programs and actual qualifying for loans make this time around a much safer bet for everyone.

At Coldwell Banker we have been experiencing an ever increasing population of first time home buyers. Supported by Moms and Dads, these buyers are taking the first step to owning their own home. I can tell you they are excited and I don’t blame them.

Traditionally, owning your own home is the most responsible and positive financial step you can take. I remember my C.P.A. advising me to buy my own home before I considered doing any other long term financial planning. He advised that it is the best forced savings account, is supported by government tax incentives, and over time would probably perform as well or better than any other investment I could make. Except for a lucky original investment in a San Diego company named Qualcomm he was right.

For those of you who have owned your home for more than four or five years considering a move up might be wise. The inventory of move up homes in San Diego is offering some of the best values I have seen in years. I just took advantage of this opportunity myself.

With all the national and international headlines predicting possible further declines in value why would I suggest you consider taking action now? I believe that all real estate markets are local in nature. Since San Diego entered the real estate recession and adjustment in mid 2005 it stands to reason that we will probably see recovery sooner than markets like New York City that has just begun feeling the adjustment.

A good indicator is our inventory of homes for sale. A healthy market has six to nine months of inventory available at any one time. Our current inventory is about six and one-half months and that is on the low end of the scale. Because our inventory has continued to decline recently it indicates to me that we may be at or near the bottom. If you add to that the possibility interest rates below 5% then I’d make sure I did everything now to prepare for the opportunity. At a minimum get yourself pre-approved for a mortgage; it’s the first best step.

If your reason to buy a home is long term, shelter for your family and a place to enjoy your life then don’t wait too long. Buying my first home opened doors of opportunity I would never have been able to take advantage of. Don’t miss your opportunity.

Focusing On Foreclosures

Everyone is focusing on foreclosures in SoCal and while they are real and largely due to speculation and unqualified buyers looking at easy financing, they are not close to our historical highs and are not predicted to move to those levels. They are, nonetheless worrisome and a tragedy for some.

As shown above, foreclosure activity for all of Southern California during the past quarter approached 10,000 homes. By third quarter 2008, the level of foreclosures activity will approach 11,600 homes. The impact has been, and will continue to be, a contribution to the current over-hang in housing inventory and reduced home price support. Unlike market priced comparables, much of this added supply will be offered at below market pricing in order to move inventory quickly.

A brief view of current sales activities for the county



CCDC just reported that in October the 10,000 mark was surpassed in terms of new housing units completed in downtown San Diego since 2001. Sales in that zone were slightly ahead of 2006 through the first 8 months of 2007.

Here is a comparison of fundamental real estate indicators with other major metros:



Thanks to Forbes magazine, LA Times and DataQuick for this month’s data charts


If you found this issue to be even mildly interesting consider using the SDHomePros.com for any real estate needs you might have. We take service and prompt execution very seriously.

Please contact us at (619) 895-0389 jgoodell@coldwellbanker.com

News on Fannie Mae and Freddie Mac

This weekend, the U.S. Dept. of the Treasury placed Fannie Mae and Freddie Mac, government sponsored enterprises (GSEs), into a conservatorship. The federal government is authorized to take up to an 80 percent stake in the companies, and, as part of its duties under the conservatorship, will review both Fannie’s and Freddie’s financial condition quarterly, as well as inject money into the operations as needed.

Under the conservatorship, both GSEs will be allowed to increase their mortgage funding over the next year and a half, then, beginning in 2010, the plan calls for a reduction in their portfolios of 10 per cent a year until they have been reduced to $250 billion. As part of this weekend’s action, both CEOs were relieved of their duties and Herbert Allison, former Merrill Lynch vice chairman, and David Moffett, former U.S. Bancorp CFO, were selected to lead Fannie Mae and Freddie Mac, respectively.

In light of the U.S. Dept. of the Treasury’s action, C.A.R. today reaffirmed its support for Fannie Mae and Freddie Mac and their countercyclical roles.

While the short-term impact of the Treasury’s actions over the weekend served to calm the markets and restore confidence, in the longer term these entities need to be able to fulfill their historic mission. A privatized Fannie and Freddie will short-circuit the countercyclical role the GSEs have played during precarious times in real estate markets.

Without an institutionalized mortgage-backed securities market, mortgage capital eventually will be less predictable and more expensive, and adjustable-rate mortgages could become the standard loan for home buyers, as could higher down payment requirements. The 30-year, fixed-rate mortgage as we know it will no longer be readily available for most home buyers and may effectively disappear. The result could be a dramatic decline in homeownership rates in California and across the nation.

C.A.R. is concerned that the Treasury, and Fannie Mae’s and Freddie Mac’s new CEOs, will overreact and change the mission and role of the GSEs. Wall Street and investors are understandably reluctant to buy mortgage backed securities (MBS) that are not either originated from or guaranteed by Fannie or Freddie.

The GSEs hold or have securitized nearly half -- roughly $5 trillion -- of all mortgages in the U.S., and in the current environment with private lender constraints, they account for the vast majority of all new mortgages in California.

We have just recently begun to see an increase in home sales, currently at nearly 490,000 units on an annualized basis, up from 284,000 in the fourth quarter of last year. The most significant, reliable source of home loans in California today are financed by either Fannie Mae or Freddie Mac. California’s and the nation’s housing markets simply cannot withstand the financial rug being pulled out from beneath them. Additionally, the repercussions this could have on the already weak economy could be devastating.

C.A.R. is urging lawmakers to support continued government involvement in supporting the institutional secondary market and its role in creating homeownership opportunities. While we applaud the U.S. Dept. of the Treasury for increasing the GSEs portfolio limits, we will be asking Congress to enact legislation to ensure the two companies continue to fulfill their mission.

http://www.car.org/newsstand/video-js-gse In “Fannie and Freddie: Why They Matter to You,”

Please contact us if you have any questions (619) 895-0389

New La Mesa Home For Sale

Fannie Mae Eases Down Payment Requirements

Fannie Mae announced today that, beginning June 1st, it will ease its policy on down payment requirements in all markets. This supersedes a policy that it announced in December requiring larger down payments in declining areas.
The new national down payment requirements will be 3%, for loans approved through their automated computer system, and 5% for other loans on the purchase of single-family, primary residences.
In addition, Fannie Mae will still allow loans with Community Seconds® for up to 105% of a combined loan-to-value. Community Seconds are –typically government sponsored- loans to assist with down payments and closing costs. Other programs which allow down payment assistance in the form of grants or gifts will also continue to be supported.
So, if you’re a buyer who’s been sitting on the fence waiting for the right time to jump in to the market, you had better get your jumping shoes on!

Steve Brown
619-368-3765

The Roof: Topping It All Off

Every roofing material has its unique perks and drawbacks. Here’s a look at some of the most popular materials, and what you need to know to speak knowledgeably with clients.

Never underestimate how much a roof can impact a sale. If it’s not up to par, some buyers will walk away or turn the roof into a major sticking point of negotiations. On the other hand, a beautiful roof can give potential buyers all the reason they need to make a competitive offer. And that’s precisely why you must grow your knowledge of this essential home feature.In addition to the shape of the roof — whether it’s a gambrel, a gable, or a Mansard — the material used for roofing can make an enormous impact on the look and style of a house. Let’s take a look at the various types of roof materials and the pros and cons of each.

All Roofs Are Not Created Equal
The longevity of a roofing material is somewhat dependent on the climate, so estimates of lifespan are approximate and also depend on whether the material is properly installed. Here are six commonly used roofing materials that you should be able to identify and discuss with clients.
Click Here For More Details

FICO Scores and You!

“I’m thinking of a number between 300 and 850. Do you know what it is?” Thanks to the abundance of fix-your-credit ads on television, most of you probably guessed that I was talking about your FICO scores. FICO, that all important number that credit bureau’s use to tell potential creditors how much of a credit risk you may be.
Just a couple of years ago a score between 680 and 720 would often get you the best loan terms but today, with the increase in the number of defaulted loans, that score has risen to between 720 and 750.

So how do you bring your score up? Often, consumers find the process a lot tougher than they initially anticipate.

The basics haven’t changed: Pay your bills on time and don’t max out available credit. 35% of your FICO score comes from your payment history. Another 30% is derived from account balances – including the number of accounts as well as the amount of available credit on each card.

Also, you want to analyze your credit report. You can get a free copy of your reports from the three main reporting companies from someplace like Annualcreditreport.com. Look through this report carefully for errors and then contact both the creditor as well as the agency reporting the discrepancy to get them resolved. You can also obtain a copy of your actual FICO scores from myfico.com.

One thing to check on the reports is if your current credit cards report the credit limit of your account. If they do not, the report can treat your highest account balance as the credit limit thus not correctly reporting the debt ratio of the account.

Having a variety of credit types can also help boost your score. This will become even more critical as FICO 08, a new scoring system being introduced, becomes more widely accepted. So a history of payments to both installment creditors (car loans, house loans, etc.) and to revolving credit lines (credit cards) can be interpreted as a sign of successful credit management.
Be careful not to open several new credit lines in a short period of time. Though it may seem beneficial to increase your overall available credit, numerous inquiries to the credit bureaus is taken as a sign of higher risk. In the same line, if you are shopping for a new loan, try to move quickly. A couple of inquiries that result in a new loan should have little or no adverse affect on your credit score.

Another tactic that may seem counterproductive, don’t close off old credit lines. This could result in lowering your available credit which, in turn, could lower your score. Instead, keep them open but paid off. Some strategists even recommend using an old card every couple of months for a small purchase just to keep an active payment history going.

Fixing or improving your credit score can be a long process but with a little preplanning and a sound spending strategy, it is obtainable and can result in saving you thousands of dollars in lower interest rates and better loan terms. Well worth the time investment!

FHA Loan Limits Rise

Effective as of March 6, 2008, the mortgage limits for loans guaranteed by the Federal Housing Administration(FHA) have been raised in 14 high cost California Counties.
The California counties at the new maximum level of $729,750 for FHA loans are Alameda, Contra Costa, Los Angeles, Marin, Monterey Napa, Orange, San Benito, San Francisco, San Mateo, Santa Barbara, Santa Clara, Santa Cruz and Ventura.

The new, temporary loan limits range from $271,050 to $729,750. These limits are derived from the median home prices in each county. Loan limits will be set at 125% of the median sales price for an area. This increase will help provide economic stability to communities in California and give hundreds of thousands of homeowners and homebuyers throughout the country a more affordable mortgage alternative.

However, these higher loan limits are temporary and expire at the end of 2008.

The End is Near?

Last week figures put out by the National Association of Realtors hint that, perhaps, we are seeing the end of the so-called housing crises. According to the report (viewable here), the adjusted annual rate of existing home sales for February this year was up slightly compared to the figures from January. This is the first increase in home sales reported in six months!
Taken in context, the figures are still down by 23.8 percent from the figures of February, ’07. So, though it’s unlikely that we’ve seen the end of this correction it is, at least, a flicker of light at the end of the tunnel.
Regardless of whether the end is here, or near, or still a ways off, with today’s low interest rates and home prices coupled with the large inventory of homes for sale, it is an absolutely fantastic time to buy!

Steven R. Brown
Coldwell Banker
619-368-3765

UPDATE!

Government Announces Conforming Loan Limit Increases
The Office of Federal Housing Enterprise Oversight (OFHEO) today announced it has temporarily increased limits on conforming loans offered by government-sponsored enterprises, Fannie Mae and Freddie Mac, from $417,000 to as high as $729,750 in fourteen counties in California for loans originated between July 1, 2007 and Dec. 31, 2008. Fannie and Freddie are reported to be working out new underwriting standards and expect to begin offering the new loans soon.
Also, on Wednesday, the government raised the conforming loan limit for mortgages guaranteed by the Federal Housing Administration, and has begun offering the maximum limit of $729,750 for 14 California counties, up from $362,790, for loans originated between now and Dec. 31, 2008.
The Fed’s economic stimulus package approved earlier this year called for temporary increases on conforming and FHA loan limits to allow troubled borrowers to refinance out of sub-prime loans and make it easier for many new buyers to qualify for mortgages in high-cost areas, particularly in California where home prices remain among the highest in the nation.

FHA Higher Loan Limits

Subject: FHA Higher Loan Limits

Good Thursday to You.

I just wanted to follow up on the news that was in the paper today about the FHA Loan limits. San Diego will now be $697,500 for FHA Loans. While the FHA max loan limits have been announced, we have gotten no information from GNMA with regard to credit pricing nor how the loans will be delivered into the market. We spoke with our rep at Ginnie Mae today and she indicated that an announcement will be out either late today or tomorrow. She did not want to speak to specifics until the announcement is out.

How the loans have to be priced and traded will dictate how / when we can roll this out. I will keep you posted.

Thanks and have a great day!

If you need anyone pre-approved please feel free to give me a call on my cell phone. Talk to you soon………..

Todd Brown
CB Home Loans
858-752-2978

Group says more Californians can afford to buy their first home

Some 33 percent of households in the state were able to afford their first home in the last three months of the year, according to the CALIFORNIA ASSOCIATION OF REALTORS®. That’s up from 25 percent in the same three months of 2006. The trade group for real estate agents calculates affordability based on the minimum household income required to make a 10 percent down payment and secure an adjustable interest rate loan at 6.21 percent.
MAKING SENSE OF THE STORY FOR CONSUMERS• As the median home price declines, many potential home buyers who had previously believed an entry-level home was out of reach may now find themselves in a position to buy.• The median price of an existing, single-family detached home in California during December 2007 was $475,460, a 16.5 percent decrease from the revised $569,350 median for December 2006.• Prospective buyers for the most part need not worry about the bidding wars that drove up home prices during the housing boom.• First-time home buyers needed to earn an annual income of $82,200 to buy an entry-level home in California in the fourth quarter of 2007, down 15 percent from the $96,600 annual income needed to buy during the last three months of 2006.To read the full story, click here.

Fed Lowers Interest Rates- What Does This Mean For San Diego Real Estate

In order to answer this question, it is helpful to understand the four major interest rates that are affected by the Fed:
Discount Rate (currently 3.5%) - the interest rate that banks pay when they borrow money directly from the Fed. The rate has been largely symbolic in the past because banks prefer to get short term financing by:
Issuing "commercial paper" – these are short term IOUs of typically one to ninety days
that are sold on the open market to Wall Street investors. Interest rates on these short
term loans are often better than the discount rate offered by the Fed.
Borrowing money from other financial institutions using the Fed Funds Rate as illustrated
below. In most cases, this rate is also better than the discount rate offered by the Fed.
Borrowing money using the Fed's new "Term Auction Facility" that allows Banks to bid
anonymously on what interest rate they want to pay when they want to borrow money
from the Fed.
Fed Funds Rate (currently 3%) - the interest rate that banks pay when they borrow money from each other here in the US. This rate is also determined by the Fed because banks in the US are part of the Federal Reserve System. You see, the Fed's main role is to maintain "monetary stability" by keeping a close eye on the flow of money throughout the economy. One way they do this is by regulating the interest rates that banks charge each other for short term funds.
LIBOR Rate (One Month LIBOR is currently 3.77%) – the London Interbank Offered Rate (LIBOR) is the interest rate that banks pay when they borrow money from other banks anywhere in the world (primarily in the international wholesale money market based in London). There are various types of LIBOR rates including the 1 week LIBOR, 1 month LIBOR, 6 month LIBOR, and 1 year LIBOR; these are the rates banks would pay if they want to borrow funds for 1 week, 1 month, 6 months, etc. Although the LIBOR rates are determined by the financial markets at any given time, they are very closely relatedto the Fed in that LIBOR most often changes when the market anticipates that the Fed will change their
Fed Funds Rate. LIBOR is the base rate that is used on most adjustable rate mortgages (ARMs) in the US and large corporate / commercial loans. The reason LIBOR is used most often for US adjustable rate mortgages is because LIBOR is really the most accurate measure of a bank's cost of borrowing funds since most banks do business internationally these days.
Prime Rate (currently 6%) – the Fed Funds Rate + 3; this is the base rate that is used for most
consumer loans such as credit cards and home equity lines of credit, as well as most small business loans. Like the LIBOR, the Prime Rate is also tied to the Fed Funds Rate.
You see, as the Fed lowers the Fed Funds Rate, the business and consumer-based interest rates of LIBOR and Prime will also godown as illustrated above. The Fed would be reluctant to continue lowering rates if they feel that businesses and consumers would start borrowing and spending so much money that inflation will go up significantly. Remember, the Fed's main goal is to "maintain monetary stability" by keeping a close eye on the flow of funds in the US economy.
It would be reckless of them to artificially encourage too much borrowing and spending as this would only artificially drive up asset prices and cause money to lose its purchasing power. This phenomenon is known as "inflation." The good news, however, is thatinflation seems to be under control based on some of the latest economic reports. How does the Fed affect mortgage rates?
Well, if you have a home equity line of credit based on Prime or short term ARMs based on LIBOR, you should see an immediate reduction in your interest rate in the coming weeks. However, if you are considering a fixed rate loan or longer term ARM with a fixed period of 3, 5, 7 or 10 years, rates on those types of loans are not directly related to the Fed. Instead, these rates are closely tied to the Mortgage Backed Securities that trade on the bond market. For more on how this process works, contact us at (619)895-0389

Once In A Lifetime Opportunity

This is Beautiful 3bd/3ba Home in San Diego County. This home is located on Mt. Helix, a peaceful and highly desired neighborhood. If you have any questions about this property give me a call or email me. (619) 895-0389 jgoodell@coldwellbanker.com

Many Gorgeous homes like this one can be found in San Diego. If you are looking for a home in San Diego and have not found the right one for you, I would like to extend my services to you as Your San Diego Expert. I have been a resident of San Diego County for many years. I am very familiar with the communities, homes, and real estate market trends. That is why I call my self the San Diego Real Estate Expert. I am able to give you professional advice and answer the questions you have been wanting to ask. So, give me a call!

Get To Know Neighborhoods Better

We have created and easy way to find housing statistics, demographics, school information, property price, and much more about specific neighborhoods you may be interested in. It is a great site designed specifically for those who are looking for a new neighborhood or trying to sell a property in a specific neighborhood. You are able to look at all the neighborhoods through a comprehensive satelite map. Try to find your own house it is interesting to see!


Seller's can compare the selling price of their homes to their neighbors. You are also able to see the value differences between neighborhoods in San Diego.

Buyer's can look at different neighborhoods to look for choice school districts and comfortable population settings.


We are experts in all San Diego neighborhoods but, we have just started putting together the information online so here are the neighborhoods we have so far:

La Mesa
Spring Valley
El Cajon


If there is a San Diego neighborhood that you like to see please leave us a comment.

Avoid Foreclosure

• Make Your Mortgage Payments – If you find yourself in a pickle and unable to make your payment, call your lender immediately! The key is to talk with your lender BEFORE you are late. Generally, if you call the lender before you are late they will allow you some extra time to make the payment or work with you on the best solution for your circumstances. Once you go past that payment date, and you haven’t contacted them you will be considered late and you may have missed your chance to smooth things over with the lender.
• Know the Effect of a Foreclosure – If there seems to be no way out for you and Foreclosure may occur, before you allow it to happen ask questions. Contact your lender and ask them what will happen to your credit score and history - make sure you fully understand the repercussions.
• Keep Credible Notes - When talking with your lender it is very important to take detailed notes about your conversations. Things to keep note of would be: Who you spoke to, What is their title, What was discussed, What time and day did you speak to them, What was the outcome of the conversation? etc. Another important thing is if you feel as though the person you are talking to is not someone that is going to be able to assist you with your needs and questions, demand to speak to their superior or another department that handles situations like yours.
• Ask What Your Options Are – Talk with your lender and ask them what your options are other than Foreclosure and if there is any way they would be able to refinance your loan in order to make the payments more manageable. Ask if they will allow Forbearance on your mortgage. This is when the lender will temporarily suspend or lower your monthly payments to assist you with catching back up.
• Manage Your Budget Wisely – Even that “Starbucks” coffee you get a “couple” times a week can add up. Sit down and review your finances, look at where your money is going and what “things” you can cut out on to put towards getting your mortgage payments back on track.

If it is to late for you to take these steps, we have ways to help you:

Click here to visit our Foreclosure Solution Site.

If you have already made a decision to sell your home check out our marketing plan or get your Free Home Evaluation.

The Best Way To Sell Your Home

In today’s marketplace, the most powerful medium we have is the internet. In fact, the most recent studies show that over 90% of property buyers first see the property on the internet. And the trend is still moving upward. For that reason, we invest to dominate the internet. Your property will be presented on all of the sites and search engines on our list(click here to view), as well as some that aren’t listed. You might want to Google “SDHomePros”. I don’t expect potential buyers to Google our name, but the search results will show you many of the places a potential buyer will find your property if you choose to have us market it. Check out all our different services to our sellers such as,Comparativve Market Analysis (CMA Home Evaluation), Print Advertisement, Internet Advertisement, Our adveritisement to other agents, and The First Steps of Our Marketing Program.
Also View our virtual tours, professional photography, and our marketing checklist which allows you to see what marketing has been done for your property.

If you are interested in selling your home and you like our program give me a call (619) 895-0389 or email me at jgoodell@coldwellbanker.com

Bush Signs Mortgage Foregiveness Debt Relief Act

Well the Mortgage Relief Act has been signed just before Christmas. What is good about this legislation is that those who have been hit with a a foreclosure or short sale now will have tax relief on the loss accrued by the lending company as opposed to it being considered taxable income.

US President George W. Bush has signed the Mortgage Forgiveness Debt Relief Act into law. The measure will waive taxes for many homeowners who must restructure their mortgages as they face foreclosure.The US housing market has seen serious strains in recent months. Property values have fallen in many parts of the country. At the same time, the ongoing subprime lending crisis threatens middle-class homeowners, as many have seen their monthly payments increase faster than their ability to pay.Jane Mercer, California Resident, said, “Many people are just one paycheck away from being on the street they are in trouble.” The new law principally erases the tax bill that many homeowners would face if a lender erased some debt to ease payments. Before the law, debt that was forgiven in a foreclosure or as part of a loan workout was classed as income. via CCTV International

If you have questions about this give me a call at (619) 895-0389