Do You Have Enough Homeowner's Insurance?

Click here to read the San Diego Union article...

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Cut Your Mortgage Payment

A little-known strategy for cutting mortgage payments

Homeowners looking to lower their monthly mortgage payments and reduce their interest rate may be able to do so without refinancing. A little-known strategy called recasting or re-amortization is available through some mortgage lenders and servicers, and eliminates the hefty fees and daunting credit requirements of refinancing.

MAKING SENSE OF THE STORY FOR CONSUMERS

• Re-amortization requires borrowers pay off a lump sum of the principal amount on the mortgage and asking to have the monthly payments reset according to the original interest rate and loan terms. The lump sum reduces the principal, so the new monthly payments decrease slightly and interest paid over the life of the loan is reduced.
  
  
• Lenders typically charge an administrative fee of $150 or more to re-amortize a mortgage; however, borrowers are not required to pay closing costs or submit to another credit check.
  
  
• Re-amortizing works well for homeowners unable to qualify for refinancing, especially those who are self employed or have low poor credit.
  
  
• Homeowners consider re-amortizing their mortgage should be aware that some lenders require a minimum amount to be paid toward the principal in the lump sum. JPMorgan Chase, for example, charges a $150 fee and requires a minimum $5,000 payment toward the principal.
  
  
• Another challenge is finding a lender, or loan servicer, that offers re-amortizing. JPMorgan Chase and Bank of America exclude loans backed by the Federal Housing Administration and Dept. of Veterans Affairs, and loans that were sold off and securitized may also need investor approval.

Click here to read the full NY Times story

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No Transfer Tax Tied to Healthcare

New healthcare reform law does not alter capital gains exclusions

Misinformation has been circulating again on the Internet and in e-mails recently that the healthcare reform bill passed last year includes a sales tax on real estate. This information is incorrect, and C.A.R. would like to clarify the information. The new law imposes a 3.8 percent tax for households in the top tax brackets on “unearned income.” This includes capital gains. However, this will not impact the exclusion on capital gains earned from the sale of a primary residence up to $250,000 for individuals and up to $500,000 for married couples. The 3.8 percent tax will only apply to capital gains above the normal exclusion.

Click here for more info.

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Home Sales Up!

California home sales hit seven-month high in December
California home sales rose in December, posting their highest level since May, according to a report from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.), as the inventory of unsold homes dwindled.

MAKING SENSE OF THE STORY

• Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 520,680 units in December, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. December’s sales were up 5.9 percent from November’s revised pace of 491,590 units, but were down 6.8 percent from the revised 558,840 sales pace recorded in December 2009. The statewide sales figure is adjusted to account for seasonal factors that typically influence home sales.
  
  
• Following three consecutive monthly declines, the median price of an existing, single-family detached home sold in California increased 1.7 percent from a revised $296,690 in November but was down 1.6 percent from the revised $306,860 median price recorded for the same period a year ago.
  
  
• “December’s sales increase reflects buyers taking advantage of rock bottom interest rates and improved affordability since the first half of the year, when prices were higher,” said C.A.R. President Beth L. Peerce. “Most of December’s sales opened escrow in October and November. Rates hit their absolute lowest in October but began edging higher in November, prompting buyers to get off the fence,” she said.
• For more about the California housing market, watch a video of C.A.R. Chief Economist Leslie Appleton-Young as she discusses highlights of the December sales and price report.

Click here to read the full story

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Open House

We are holding Open House
Sunday January 30
1pm to 4pm

3753 Iroquois
(E/Palo Verde & N/Wardlow)

Please stop by and say hi!

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90815 Stats

Statistics for 90815



Click here for...
Average prices over past year Median prices over past year Number of listings over past year Details of each house sold over past year
and MUCH more...

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90808 Stats

Statistics for 90808



Click here for...
Average prices over past year
Median prices over past year
Number of listings over past year
Details of each house sold over past year
and MUCH more...

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Open House

We are holding Open House
Saturday January 15
1pm to 4pm

3096 Conquista Ave
(W/Palo Verde & N/ Spring)

Please stop by and say hi!

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When will housing come back in California?

When will housing come back in California? Five experts offer their views
Although the steep decline of home prices in California ended in spring 2009, the weakness in the housing market after the expiration of federal tax credits for home buyers last year has led to some speculation as to whether the recovery is sustainable. Five experts, including Leslie Appleton-Young, the chief economist for the CALIFORNIA ASSOCIATION OF REALTORS®, were asked to provide their view on the state of real estate and what they think is needed to get the housing market moving again.

MAKING SENSE OF THE STORY FOR CONSUMERS

• In terms of home prices, the experts differed slightly with the majority predicting that home prices will remain flat throughout 2011. Ms. Appleton-Young predicts home prices will rise 2 percent this year, while a foreclosure expert predicts housing prices to decline 5 percent in 2011.

• According to Ms. Appleton-Young, there is little chance of home prices returning to their previous peak levels anytime soon. “We are in a slow-moving recovery with prices stabilized at the moderate and low end,” she said. “We are still seeing price attrition and price softening at the upper ends of the market.”

• California’s recovery will hinge on location, according to Richard Green, director of the USC Lusk Center for Real Estate. Areas between El Centro and Sacramento likely will not see a return to peak prices for a long time. However, places like La Jolla, Laguna, Huntington Beach, Atherton, Palo Alto, the city of San Francisco, and Marin County could experience a return to their peak prices within the next five years, according to Mr. Green.

• Foreclosure expert Bruce Norris of the Norris Group believes the market is being artificially boosted by government programs and is set to fall further this year. Mr. Norris believes the demand for housing is most-needed for a sustainable recovery.

• California’s coastal markets will make a return once the job market improves, according to Emile Haddad, chief executive at FivePoint Communities Inc. In turn, that will lift consumer confidence. However, California’s inland areas are more likely to lag behind, and builders will have to reconsider the kind of product they offer in certain places.

Click here to read the full LA Times story

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Open House

We will be holding Open Houses
This Saturday 1 - 4 pm

3422 Knoxville
(N/Wardlow & E/Palo Verde)

3052 Kallin

(N/Spring & E/Studebaker)


Please stop by to say hi.

Fast Facts

Fast Facts

Calif. median home price: November 2010: $296,820 (Source: C.A.R.)

Calif. highest median home price by C.A.R. region November 2010: Santa Barbara So. Coast $874,500 (Source: C.A.R.)

Calif. lowest median home price by C.A.R. region November 2010: High Desert $124,580 (Source: C.A.R.)

Calif. First-time Buyer Affordability Index - Third quarter 2010: 64 percent (Source: C.A.R.)

Mortgage rates: Week ending 12/30/2010 30-yr. fixed: 4.86 Fees/points: 0.8% 15-yr. fixed: 4.20% Fees/points: 0.8% 1-yr. adjustable: 3.26% Fees/points: 0.6% (Source: Freddie Mac)

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Reverse Mortgages Getting Cheaper

The popular "Reverse Mortgage" is getting cheaper. Click the link below to read the NY Times article:

http://www.nytimes.com/2010/12/12/realestate/mortgages/12Mort.html?_r=1&ref=realestate


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Homebuying Tips!

Tips for getting the best deal faster

The inventory of homes for sale has increased in recent months, causing some buyers to hesitate before making an offer on a home for fear a better home at a more favorable price will become available.

• Although real estate agents are showing more homes to clients, people still are buying homes, especially first-time buyers. According to the latest figures from the NATIONAL ASSOCIATION OF REALTORS® (NAR), first-time buyers now account for 50 percent of all home sales.
  
  
• Some agents claim that today’s buyers are having a problem staying committed to the home search. During the height of the market, home buyers were more apt to make housing hunting a priority and to move on a good deal. Real estate experts advise today’s home buyers do the same to be successful in their home search.
  
  
• Making a list of “musts” and “wants” for home features will help home buyers narrow down the search. Identifying key features, such as the number of bedrooms or bathrooms, will help buyers avoid being overwhelmed by the number of homes available.
  
  
• Buyers are best advised to work with a REALTOR® who is familiar with the area. Media reports that home prices will decline further may be true for some areas, but not necessarily in all areas. All real estate is local, so finding out what’s happening in a specific neighborhood is most helpful.

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