I thought you all might find this information very useful, as homes prices are getting very affordable, and sales are picking up nicely... lets hope this helps the economy come back up sonner than expected. Maybe by end of 2009?
Info from the California Asociation fo Realtors web site
For release: Thursday, Feb. 26 2009
Quick Facts: · Existing, single-family home sales increased 100.8 percent in January to a seasonally adjusted rate of 624,940 on an annualized basis · The statewide median price of an existing single-family home decreased 40.5 percent in January to $254,350 · C.A.R.'s Unsold Inventory Index was 6.7 months in January, compared with 16.6 months in January 2008 · The median number of days it took to sell a single-family home was 49.9 days in January 2009, compared with 70.8 days in January 2008
C.A.R. reports sales increased 100.8 percent; median home price declined 40.5 percent in January
I thank Fred Eckert from Chicago Title company in San Diego, for his up-to-date newsletters on home trends, perspective and history.
Here are some of his very "wise" comments:
As we move into 2009, we should all take a step back to put the current market into perspective. One way to do that is to look at historical statistical information that allows us to see the long term "big picture". Take a look at a couple of pieces that we regularly include-San Diego County Home Sales Recorded in the Year 2008 and the Interest Rate History thru December 2008. I think you will see an emerging picture that points to the tremendous opportunity for buyers & investors to get in the game! Finally, a brief Realty Times article about the 2009 real estate outlook-again, another good piece of information for all of us-pass this along to everyone!
In addition, this time he also sent this very informative article:
What will the new year bring for housing and real estate? It's easy to look at all the negative economic news in the headlines and say - there's no sign that 2009 is going to be any better than 2008.
But here's a different perspective to consider from one of the country's veteran financial analysts -- Richard Bove of Ladenburg Thalmann, an investment banking company.
In a research report issued late in December, Bove said he sees a positive dynamic taking shape in the current cycle. The government has intervened aggressively in the markets to push interest rates down -- most notably in the home mortgage sector.
Though it takes awhile for low-cost money to begin having its effect, Bove said he expects "housing prices to stabilize and/or rise (in 2009) after a likely boom in mortgage refinancings as rates fall and loan applications increase."
Add in the expected massive economic stimulus package being put together on Capitol Hill with the incoming Obama administration -- and there's a good chance we're going to see a gradual transformation of the downward cycle into a slow rebound over the coming several quarters.
Already there are positive signs of the turnaround Bove predicts:
Sidelined home buyers. Family or lifestyle additions or changes made in buyers households in the last three years are forcing those waiting out the market transition to finally get off the fence and say, it's time for our family to buy the new home that suits our new needs.
Mortgage applications are off the charts, mainly for refis but also to buy houses at affordable prices.
Rates continue to hover at 50-year lows - five percent and even four and three quarters percent for 30-year mortgages, and still lower for 15 and 20 year mortgage terms.
Plus we're all paying a lot less at the gas pump, and sharply discounted prices for retail goods and autos.
And guess what? Americans are actually SAVING again, the national savings rate took a nearly three percent jump last month. That might sound small, but it's hugely important if it is the start of a trend.
There are also some signs that housing prices are stabilizing in some parts of the country. The latest monthly Federal Housing Finance Agency index found home prices UP by six-tenths of a percent in the Mountain states and UP by two tenths of a percent in New England.
You can ridicule small regional gains as statistically irrelevant, but here's an economic proposal to you for the New Year: Keep your eyes open for the small positive signs that are accumulating out there ... because all downcycles tail off and come to an end.
The smartest players in real estate -- consumers and the industry - will make the most of the positives -- low-cost money, low prices, stabilizing local markets -- and thrive in the new year.
Given the unrelenting doom and gloom in the media, it's no wonder you feel like you've got the upper hand when you're looking for a new home. Visions of lowball offers, grateful sellers, and bargain basement prices dance in your head.
But real estate is local and even today you may find yourself in a competive market where houses sell quickly and still get multiple offers.
There have been a number of multiple offers in my market recently and it can take newcomers by surprise. Some houses, clearly well priced, get half a dozen or more offers the first weekend on the market. So here's a game plan to take you through the crazy, stress-producing process of buying a home when you've got competition.
What's a savvy buyer to do when there are multiple offers?
For starters, don't be discouraged and don't be afraid. It is possible to "win" and get the house of your dreams and it doesn't necessarily mean you have to break the bank to do so. I've bought three of the four properties I've owned in multiple bid situations - including my first house. And I've been happy with every house - no regrets!
Get A Buyers' Agent
You need to be working with a buyer's agent who will represent your interests in the transaction. Sometimes buyers think that going directly to the seller's agent will give them a leg up. But the seller's agent's responsibility is to the seller, not to you as a buyer. And it's quite likely that the seller will still owe the same commission to the listing office even though only one agent is involved in the transaction. And most important - in a multiple bid situation the listing agent's responsibility is to get the best offer for the seller - regardless of whether you've submitted an offer directly to him or her. The sellers' goal is to get more money in their pockets - not the agent's.
You need somebody on your side. A buyers' agent will be able to:
Pull comparable sales info to enable you to decide on a reasonable but competitive offer price
Advise you about real estate activity in the neighborhood for similar houses
Strategize about how to put together a compelling offer that has a strong chance of prevailing in a bidding war
How Does the Seller Decide Which Offer To Accept?
When the seller looks at several offers there are only so many points to compare. You want to shine on all points:
Price - Go over the comparable sales information with your agent. Don't get stuck on the asking price - the house may be purposely priced low to generate excitement - and that strategy worked! Carefully go over the stats and decide on a price that makes sense and seems competitive. Your agent will have experience in the market and be able to offer advice but ultimately you're deciding on an offer price that is comfortable for you and reflects just how much you want the house.
Don't assume that multiple bids means the offers will go sky high - sometimes all the offers can be under the asking price. Other times it does seem the sky is the limit - we've had at least two houses in Cambridge sell for $1,000,000 over the asking price. The comparable sales info and the amount of activity for the listing should give you some sense of how the offers might go.
Dates - Your agent will find out what dates work best for the seller - do your best to meet them. Maybe you'll have to move in with your parents for a few weeks or move more quickly than you had hoped but remember - you'll be moving into the house you love. The temporary inconvenience will be quickly forgotten.
Contingencies - The typical offer contingencies are financing, inspection, and in the case of condominiums, satisfactory review of the condominium documents. You should have a letter of preapproval from your lender at the ready. Be aware that some buyers may very well drop any and all of their contingencies. You have to decide if you are comfortable eliminating any contingencies. Perhaps you have cash on hand from a previous sale or your parents will back you up and you're open to the idea of dropping a financing contingency. Or you had the chance to go through the property with an inspector prior to submitting your offer.
Everyone's situation will be different and everyone's risk tolerance varies as well. Decide what if any contingencies you're comfortable eliminating. And if you are including contingencies discuss with your agent how to minimize the impact - by tightening dates, increasing the dollar value of repairs you're willing to take on, etc.
Deposits - Expectations for deposit amounts vary in different states and regions. Talk to your agent about the norms in your area and consider increasing the deposit. Thist doesn't cost you anything since the deposit will go towards your down payment. From the sellers' perspective, however, it shows evidence of the seriousness of your offer.
Respect The Emotions Involved In Selling A Home
Don't forget that selling a home is often an emotional transaction. Honor that. The sellers want to feel good about passing on their home to its new caretakers.
Now is not the time for pointed questions or asking for repairs - though that time may come if you've allowed for an inspection. Remember - you're being compared with other buyers. Don't stand out as a pain in the neck - it's not to your advantage if you want the house.
Keep extraneous issues out of the offer. You're buying a house - not the furniture. Focus on the goal and talk about extras later.
And one no-cost but often very effective tool is a letter to the sellers. Write about who you are, why you love the house, and how you'll take good care of it. Mention any special things that stood out to you. If you can tell the sellers took good care of the house say so. If you like their decorating mention that. Sellers will often remember and remark about the letter weeks after receiving it.
Ultimately the seller wants the best price and the fewest hassles. And if they can feel good about the new caretakers of their family home all the better.
What Happens Next?
There aren't any rules for how the seller chooses an offer. You may get an opportunity to better your offer and resubmit at an agreed upon time. Or the seller may choose one of the offers on the spot. It's typically to your advantage to submit as strong an offer as possible in the first round. But it also might not a bad idea to have a small buffer so that you can increase your offer by a few thousand if given the chance. But remember - you might not get that chance. Plan accordingly and put your best foot forward.
Go For It!
Some buyers are tempted to walk away from a multiple offer situation without even making a bid. But if you've found the house you really want - give it your best shot. A multiple bid situation is not insurmountable. And you can't assume that you'll have to write a sky high offer to get your offer accepted. When I sold my first house, purchased in a bidding war during a down market, one of the first people at the open house was one of the other bidders from five years before. I never regretted buying that house and for him it was the one that got away. So - work with your agent, craft your bid, and know that you've done your best. And maybe, just maybe - you'll be the happy new owners. Good luck!
4th Quarter Home Prices Down as Buyers Purchase Distressed Property
In the fourth quarter, 134 out of 153 metropolitan statistical areas showed declines in median existing single-family home prices from the same period in 2007, pulled down by active sales at the lower end that were driven by foreclosures.
Distressed sales - foreclosures and short sales - accounted for 45 percent of transactions in the fourth quarter, dragging down the national median existing single-family price to $180,100, which is 12.4 percent below the fourth quarter of 2007 when conditions were more balanced; the median is where half sold for more and half sold for less.
"It has never been more important than now to work with local professionals to properly gauge local neighborhood conditions because foreclosures are heavily skewing the broader home price figures to be much lower. Big discounts are not occurring in neighborhoods with few foreclosures. A Realtor®who is knowledgeable about local conditions can counsel consumers in making sound long-term housing decisions," McMillan, the NAR president said.
Lawrence Yun, NAR chief economist, said the market is clearly depressed from job losses and consumer concerns about the economy. "Assuming housing provisions in the economic stimulus package are quickly enacted and provide enough encouragement for home buyers, we could see a quick lift in home sales for the critical spring home-buying season," he said.
"If that occurs, we could see home prices begin to stabilize in many metro areas later this year as supply and demand begin to return to balance, which would greatly benefit the overall economy," Yun said.
According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage fell to 5.86 percent in the fourth quarter from 6.32 percent in the third quarter; the rate was 6.23 percent in the fourth quarter of 2007.
The largest sales gain in the fourth quarter from a year earlier was in Nevada, up almost 134 per cent.
In California, we followed Nevada, to be in SECOND place which rose 84.7 percent; Arizona came in third, up 42.6 percent, and Florida with a 12.5 percent increase was in fourth place for number of sales increase.
"Once again, we see a pattern of strong sales gains, particularly in lower price homes, in areas with price declines resulting from foreclosures," Yun said. "For example, in California and Florida, where distressed sales accounted for roughly two-third of all sales, the median price fell by much more as lower priced home sales far outpaced higher priced sales."
Of course, all of this is bringing in MANY buyers to the home buying mode... thus, we are seeing so many properties with multiple offers.
According to my calculations, foreclosure homes in Southern California, mainly the San Diego areas, Chula Vista and South Bay homes and condos, are selling for around 7% over the asking price... depending of course, on time on the market, comparables, condition of property, and other circumstances.
Thus, Buyers need to be ready to offer that five or seven percent more over the heavily discounted prices!
This bill, according to some experts, will increase home buying, and should help to jump-start building or stem the foreclosures that are driving down prices.
This tax credit is similar to a temporary one passed last year by Congress that was for 7,500, BUT had to be repaid.
This one is capped at 10 percent of the home price or $8,000, whichever is less, and restricted to first-time buyers who make purchases before Dec. 1, 2009. After some political wrangling, it was determined the money would generally not have to be repaid, luckily!
The National Association of Realtors (NAR), said the final tax credit provision could stimulate 200,000 home sales.
Also good to help out still some higher priced areas of San Diego, the stimulus bill does temporarily increase loan caps for Federal Housing Administration, Fannie Mae and Freddie Mac mortgages in expensive areas from $625,000 to $729,750. That effectively lowers the cost of borrowing that amount or less, providing "big help" to markets like coastal areas and some inland.
On the not so good side, other real estate proposals pushed by the housing industry and consumer groups - including lowering mortgage rates to around 4 percent and protecting struggling homeowners from foreclosures, respectively - never made it into final versions of the bill in either the House or Senate.
In addition, I have heard that the Obama administration plans to push additional legislation aimed at bolstering the housing industry, probably focused on preventing foreclosures. The plan would seek to lower interest rates for struggling borrowers through government subsidies.
"The housing industry broke first, but it was only a symptom of the underlying problem in the U.S. economy ... a 12-year spending binge based on overinflated values of our homes," said an L.A. Housing researcher
This stimulus bill, which still must pass both houses of Congress and be signed into law by President Obama, also provides billions of dollars for renovating public housing and foreclosed homes and similar projects.
Its great what congress is doing right now. Last week, they passed a $8,000 tax credit for FIRST TIME HOME BUYERS! This is something you may want to take advantage off!
How it works: it is 10% of the PURCHASE price, up to $8,000 max. The buyer will then have it credited at the 2009 year-end tax return.
It used to be only $7,500 and had to be repaid, but now, this tax credit does not have to be repaid to the federal goverment.
Also, there is an additional tax credit: $10,000 for ALL home buyers that purchase NEW HOMES this year.
Want to get both taxt crdits? lets do it!
I hope they bring back the buyer's assisted down payment program, as this can defintely help many would-be buyers, that are a bit short on cash, but have fair, good and excelent credit scores.
On a different note, we've seen now very affordable foreclosure homes in the San Diego area, including Chula Vista, Imperial Beach, Paradise Hills, Bonita, National City, Downtown San Diego, Spring Valley and many others.
I will like to inform you of the following, in order to create a better environment for visitors to Baja California Mexico, we are pleased to share a few of the actions that are taking place in coordination with authorities from the three levels of Government (Municipal-Estate-Federal) in order to assure a safe and pleasant stay for travelers to our State.
First of all, it should be underlined that Baja California maintains a very welcoming and positive attitude towards visitors, the same that historically has made us one of the preferred destinations for tourist from the United States and from all over the world.
While in the latter part of 2007 a number of isolated incidents took place, corrective undertakings where implemented by the authorities which have proven to benefit those who travel in our State. A good indicator was Easter and Spring Break vacation, as expectations where surpassed when over 380 thousand national and foreign visitors traveled throughout Baja California without an incident worth mentioning, also important events like the Rosarito-Ensenada bike ride with more than 5,000 attendees, the famous Off Road Events, Baja 250 & Baja 500, Important Holidays Like Memorial Day & 4 July, all took place with out mayor incidents, the summer is developing quite well, hotel occupancy on weekends are between 70% to 100%.
Among the efforts in place, the following should be mentioned:
· We Starting on Avenida Internacional and along the border zone of Tijuana a tourism assistance effort with motorcycle guides to orient our visitors is ongoing.
· Our Visitor Assistance Hotline 078 was improved. This toll free service provides visitors with information and assistance when necessary 365 days a year.
· We now have sixteen Visitor Information Centers available throughout the State.
· We have produced and are distributing over two million "safety tips" brochures that include a map as well as useful information for our visitors (you can down load them from our web site).
· We have upgraded and in some cases relocated our offices in order to be closer to visitors and provide better service.
· We are maintaining a closer working relationship with law enforcement agencies as well as the highway patrol to disseminate useful information and to assure they provide timely assistance to visitors when necessary.
· Bilingual operators are now available at our Emergency Phone Line 066 which can also be accessed once here from any US cellular phone, by dialing 911 or 112 from European cellular providers.
· We increased the roadside assistance service provided by the "Green Angels" .
· A new internet link is available on our website www.discoverbajacalifornia.com so that our visitors may describe their Baja California experience. This space is available to for, suggestions and even complaints..
In so far as the City Authorities are concerned:
· The new Tourism Police is now in service in the city of Rosarito Beach.
· Also in Rosarito Beach, a citizen watch group was formed with 300 volunteers to oversee that visitors have a pleasant experience while there. .
· In the City of Tijuana, law enforcement presence has been addressed and drastic measures are in place to prosecute police officers that act unethically.
· In the City of Ensenada a training program has been implemented focused on bilingual tourism police officers.
This has been a summary of some of the important actions that we have implemented to assure our visitors a pleasant stay while in Baja California. For additional information please visit our webpage at www.discoverbajacalifornia.com.
Raul Aragon Castro Delegate of the Tourism Secretariat for the State of Baja California in Rosarito Beach.
On my last drive down to Baja Mexico last week, I took my friends to the incredible new "little" development of "all-green" homes just south of the border! they where amazed.
Thus, I felt compelled to write this blog for you all to read, about the first genuine GREEN HOME development in northern Mexico, located just 20 minutes south of the border, in the beautiful Baja California, designed by the Award-winning Architect group led by Guillermo Martinez De Castro.
This development is funded by a joint US-Mexico Development Fund.
Gardenhaus is an innovative development of town homes surrounded by beautiful gardens and walkways arranged around a centrally located ocean view pool and deck. Gardenhaus is set in a raised platform 10 feet above the street for maximum exposure to the ocean, privacy from the surroundings and access to an underground parking.
All the homes have spectacular ocean views form 2nd and 3rd floor balconies and terraces with some specially situated homes offering ocean views from living areas and 1st floor terraces.
Gardenhaus will have state of the art electronic entry and video surveillance systems controlled from the security office located at the entry gate.
GREEN FEATURES
SITE PLAN:
Low maintenance & low water consumption landscaping
Recycled decking
Rapidly renewable construction materials
Recycled treated water for gardening
Compact fluorescent and low voltage lighting
Eco-friendly architectural design
Park-like grounds
High efficiency lighting
On site recycling bins and garbage pick up
Secluded patios areas
The buildings are designed and detailed to be durable and low maintenance
Widespread use of daylight and careful space planning
Natural lighting
Sustainable wood for cabinetry
These beautiful and affordable homes are located in northern Baja, Mexico, and their prices start at only $140,000 USDls. for a 3 Bedroom & 3 Bath townhome. Larger units start at only $185,000 USDls. for a 4 Bedroom & 3 Bath townhome, with superior ocean views, next to the swimming pool and decks.
Please do let me know if you would like to see it, I'd be glad to show you these Baja affordable properties.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
But real estate is local and even today you may find yourself in a competive market where houses sell quickly and still get multiple offers. 
Price - Go over the comparable sales information with your agent. Don't get stuck on the asking price - the house may be purposely priced low to generate excitement - and that strategy worked! Carefully go over the stats and decide on a price that makes sense and seems competitive. Your agent will have experience in the market and be able to offer advice but ultimately you're deciding on an offer price that is comfortable for you and reflects just how much you want the house. 
Some buyers are tempted to walk away from a multiple offer situation without even making a bid. But if you've found the house you really want - give it your best shot. A multiple bid situation is not insurmountable. And you can't assume that you'll have to write a sky high offer to get your offer accepted. When I sold my first house, purchased in a bidding war during a down market, one of the first people at the open house was one of the other bidders from five years before. I never regretted buying that house and for him it was the one that got away. So - work with your agent, craft your bid, and know that you've done your best. And maybe, just maybe - you'll be the happy new owners. Good luck! 
;)
;)
