North San Diego County Market Reports
For those of you watching the real estate market in the coastal communities of North San Diego County, here is a summary real estate market report with links to SEPTEMBER 2009 real estate market reports for the following communities:
Carlsbad
Cardiff
Encinitas
San Marcos
Oceanside
Rancho Santa Fe
Del Mar
Solana Beach
Each report also has some links to earlier market reports for those communities (some more than others). I can always provide detailed report susch as these for ANY community in San Diego as well as broken down by area/neightborhoods. Just ask.
Homebuyer Credit Extended?? Not yet
Word on the news and on the street is that the First Time Homebuyer Credit has been extended to the end of April 2010, plus they have added a credit for SOME move-up buyers. BUT IT IS NOT DEFINITE.
I don’t have the details yet but will share once I do. This is great news for some folks if it becomes fact.
What You Should Know About FHA Loans
Many buyers these days, especially first time buyers, are attracted to FHA loans, and with good reason.
Down-payment money is often a problem, and FHA only requires a 3.5% down-payment (and it can be gift money).
There are a couple of things you should know, especially if you are looking at condos:
1. FHA requires that the complex be FHA approved. Or, if it is not, you can get what is called SPOT APPROVAL which takes more time and adds to the process time frame. And there are no guarantees.
2. The owner occupancy of the complex must be 51% or better in order to use an FHA loan.
3. There is a 3-year guideline for conversions. Properties converted from apartments to condo in the last 3 years will not likely qualify for FHA financing.
Be sure to check with a qualified loan officer to make sure you understand the guidelines, as some properties that may interest you and fit your bduget may not qualify for this loan.
NOTE: Important update 10/17/09 – SPOT APPROVALS are no longer allowed by FHA with some new regulations that went into effect Oct. 1. Check with your lender to see how this affects you.
Mortgage Protection Program for California First Time Buyers
The California Association of REALTORS has announced a new mortgage protection program for first time buyers in California through their Housing Affordability Fund (HAF).
You COULD receive up to $1500 per month for 6 months to help pay your mortgage if you are layed off.
Yet Another Tax Credit
Tax credits are popping up left and right.
First there is the $8,000 tax credit for first time home buyers that arose out of Obama’s stimulus plan. Good news for some buyers in today’s market.
Now California is providing a tax credit for buyers (first timers or anyone else) of up to $10,000. The requirements are:
- you must buy a home on or after March 1, 2009 and before March 1, 2010
- the home MUST be your primary residence
- the home must never have been occupied (new construction)
This credit program is being run by the State of California Franchise Tax Board, and credits will be allocated on a first come first serve basis until the total monies ($100,000,000) are used up.
Read more on the Franchise Tax Board website.
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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your home search, please contact me by phone or text at (760) 840-1360 or email me at JDowler@remax.net.
All content copyright © 2009 Jeff Dowler
Termites and Short Sales
This post is about termites and short sales. And pre-foreclosures and REOs, too.
This is NOT to imply there are more problems with these homes than the typical sales. Termites don’t discriminate – they like wood no matter what type of home it is.
The issue for buyers, however, arises out of the fact that (1) the home is being sold AS IS, and (2) the homeowner is financially strapped and owes the bank more money than the home is worth on the market.
In the typical sale here in Southern California, buyers negotiate for the seller to do a pest inspection AND to take care of remediating termites as well as repairing the damage. Sellers don’t always agree, but it’s pretty common. A major reason this is done is because the buyer’s lender does not want to lend more on a home (their collateral) that is termite infested. Makes sense that they want a clearance on the property before closing.
Buyers – be aware that the bank may not be willing to do (pay for) the termite inspection. But more costly is the fact they may not be willing to pay for the remediation and repairs. The seller can request the bank pay this in order to get the short sale completed. But if they refuse the buyer will have to agree to the additional cost, or back out of the transaction.
Of course you will have access to the report so you will know the costs of remediation. But it is a monkey wrench that can thrown into the mix. Just thought I’d warn ya.
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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your home search, please contact me by phone or text at (760) 840-1360 or email me at JDowler@remax.net.
All content copyright © 2009 Jeff Dowler
New Website to Understand the NEW Housing Tax Credit
Everyone is aware of the new stimulus bill that has been passed, although many find it confusing. In particular the issues associated with the new housing tax credit of $8000 for first time home buyers.
A new site was created to provide information about this credit – how it works, who it applies to, and more.
Check out the Federal Housing Tax Credit site to see if YOU can benefit.
New Fee Coming for Condo Purchase Loans
Fannie Mae is implementing a new fee for folks who are buying condos.
The reason is that condos have been the riskiest buys in recent years with all the speculation, investors, and now the issues associated with short sales, foreclosures and REOs, the majority of which are condos. Condos statistically are a greater default risk, and so Fannie Mae is adding a new fee effective April 2, 2009.
Buyers will continue to have the option to use FHA loans (provided that the condo complex is FHA approved – many are not) if they qualify. Be aware that the interest rates may be different and FHA requires a 3.5% downpayment.
The fee announced by Fannie Mae will be 3/4 of a point (as a % of the loan amount) which can be fairly substantial. Something to keep in mind if you are considering a condo purchase.
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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your home search, please contact me by phone or text at (760) 840-1360 or email me at JDowler@remax.net.
All content copyright © 2009 Jeff Dowler
More Thoughts on HOA Fees
Ya gotta love ‘em if you are buying a condo, since you don’t have a choice.
AND they can sometimes be pretty hefty – so watch the MLS listings (or ask your Buyer Agent) so you are not too surprised. In our area here in Southern California HOA fees in condo associations typically range from perhaps the mid $100s to over $300 per month (and well in the $500s for higher-end complexes). These are not tax deductible so you need to factor these costs into your budget (and the bank doing your pre-approval and your loan will as well).
HOA fees can cover all sorts of things, although buyers often feel they are not getting a lot for the fees they are paying. And in some complexes that does appear to be the case. Usually exterior building maintenance is included, as is grounds maintenance. Perhaps also water and sewer, and the association will have a master insurance plan to cover the building exteriors and common areas. If the HOA is professionally managed the fees for those services are also part of the HOA fees you pay. If there is a pool, a garage, elevators, tennis courts, an electronic gate, and other amenties then you are paying for these as well.
Keep in mind these are not negotiable since they are set by the HOA not the seller. Also know that they will go up over time, and in some cases a special assessment may be needed for repairs if there is not enough money in the budget.
When doing your due diligence as the buyer once an offer is accepted, make sure you examine all the HOA documents including the meeting minutes, the budget and accounting, the rules and regulations, and the by-laws. And be sure to ask any questions so you are satisfied.
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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your home search, please contact me by phone or text at (760) 840-1360 or email me at JDowler@remax.net.
All content copyright © 2009 Jeff Dowler
Watch Those Mortgage Rates
As you may be aware, the mortgage rates have been dipping significantly in recent weeks, to a level not seen in decades – below 5% for a 30-year fixed. This can represent a substantial opportunity for buyers who are ready but sitting on the fence.
Here’s a chart showing the trend for 2008.
2008 Fixed Rate Mortgage Trend
But watch those mortgage rates. They are not expected to stay this low and in fact have bumped up a little in the last week or so. You may want to check with a mortgage broker to learn more. Even if the prices drop some more, a decent bump up in rates will negate any price drop.
If you need a recommendation for a mortgage broker, please let me know – I have several terrific contacts that can help you pretty much anywhere.
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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your home search, please contact me by phone or text at (760) 840-1360 or email me at JDowler@remax.net.
All content copyright © 2008 Jeff Dowler
