Home Prices Show Slight Increase Heading into Summer. San Diego home prices rose slightly in April over compared to March, 0.4%, ending a four-month price dip across the county.  Prices were still lower than they were the same time a year ago, and analysts claim the rise is due to the start of the spring/summer buying season.

Median Market Time for San Diego County Homes Rises. San Diego County homes showed an increase in median market time in May, up to 70 days, according to Realtor.com, lower than the national average of 92 days. Normal market time in the county is about 50-60 days. Median market time is the average time a home is listed on the market. In these more challenging times it is imperative to start a home sale at the right price, so speak with your agent about area comparables, amenities, condition and location of your home and neighborhood to attain the best price and attract buyers.

Half of pending properties in California are short sales or REOs. This may come as no surprise to those who follow the market, and it is great news for buyers. A recent study by the California Association of Realtors found that 28% of buyers who bought property last month purchased REO (lender-owned, or post-foreclosure) properties, and 19% of pending homes sales last month were short sales. The good news, aside from the fact that this inventory is being sold (leaving the market to push toward normalcy), is that these properties are priced lower than traditional sales, allowing the buyer to get a great deal.

Oversight Mandated for National Banks. As part of the regulatory settlement for the robo-signing scandal, the Office of the Comptroller of the Currency (OCC) has announced new rules by which all national banks under it’s supervision must adhere. The rules basically require the banks to assess their own foreclosure management processes by September 30, 2011. Banks are also ordered to suspend foreclosure proceedings while working with homeowners on possible loan modifications (this is big news)…although the languages does state “when possible.” Hmmm. There are a slew of other rules as well, so let’s hope this will be a start to lender oversight.

Fannie and Freddie Offer Deals to Save Buyers Money on Home Purchases. Fannie Mae and Freddie Mac are sweetening the price of homeownership by offering great deals to buyers. Sitting on over 200,000 foreclosed homes combined across the country, these two companies are eager to dispose of their inventory, so if you are a new homebuyer (sorry folks, no investors allowed) you could be eligible for up to 3.5% of the home price paid in closing costs. They are also rewarding your real estate agent with a $1200 bonus. FYI: to qualify for these programs the home must close escrow by October 31 for Fannie homes and September 30 close dates (with contract dates no later than July 31) for Freddie homes. For more information go to http://www.homepath.com/ (Fannie) or http://homesteps.com/ (Freddie).

Downpayment increase rule under debate: If you haven’t heard, banking industry regulators have a rule on the table that would require buyers to pay a minimum of 20% down on home purchases. Although many lenders require this already there are some loans that can be obtained with very little money down, such as FHA loans (which require only 3.5% down). This has stirred much debate amongst buyers, sellers, Realtors, economists and politicians, with studies concluding that 30% of the home sales market would be decimated.

Congress’ intention in raising downpayment rates is to provide stronger borrowers, thus preventing fewer loan defaults in the future. But many groups, including the National Association of Realtors (NAR) are vehemently opposed to such legislation and have been lobbying against the proposal. I will keep you updated.

Mortgage Servicers in the Hot Seat Again: At least 14 regulated mortgage servicers have been scolded by banking regulators for negligence and misconduct in servicing, or failing to properly service loans. The U.S. Treasury also recently released a report indicating performance by the 10 largest HAMP (Home Affordable Modification Program) servicers. They found 4 need substantial improvement (including Bank of America, Wells Fargo and JP Morgan Chase), and are withholding future financial incentives under the program to the 3 mentioned above until improvements are made and problems addressed.

Home Sales Expected to Rise This Year: Some economists, like Lawrence Yun – chief economist for the National Association of Realtors – predict sales for the remainder of the year will improve for the following reasons: more jobs, stock market wealth is on the rise, apartment rents are climbing, conditions of high affordability continue, home values are at historically low levels, investors are out in the market nice again looking to hedge against inflation, lenders starting to shorten lengthy short sale processes, and the number of foreign buyers has increased due to market conditions. Of course there are other factors to keep an eye on, like gas prices and the fate of Congress’ attempt to increase down payments on home purchases (see above), but there seem to be strong factors indicating this may in fact be true. Let’s hope so.

Amidst all the news of double-dipping in the housing market, falling prices and an increase in lender-owned properties, there is one thing that may be a silver lining in the doom and gloom news these days: lenders will likely start to approve short sales much sooner and more often.

As housing prices drop across the nation lenders have realized that in order to prevent an inundation of foreclosures they will need to stop the delay of short sale acceptances. This I feel is necessary if we are ever going to improve the housing market.

The current state of the market indicates that with the depletion of home values there will be more homeowners finding themselves underwater with their mortgages. If you are planning on staying in your home for a long time this doesn’t mean you should run out and short sale your property. On the contrary, as long as you can pay your mortgage you should stay put. As with any market, things will eventually rebound and you will be happy you didn’t damage your credit and let your lower real estate taxes (in most cases, if you have owned for some time) go by the wayside.

It is also important to look at your hyper-local market when taking into consideration all the gloomy news. For example, here in North San Diego the default rate has been DOWN for the 17th consecutive month. According to ForeclosureRadar this computes to 1.7 per 1000 defaults, a low number compared to other parts of California and the nation.

Foreclosures are also down in North San Diego. ForeclosureRadar states that only 1 of 1000 homes were foreclosed upon in April.

But have lenders truly embraced the short sale option? Some seem to think so, and one economist was quoted as saying exactly this. However, as an agent currently waiting for approval on two short sales I will believe it when I see it. I must say that in general response time is quicker than it used to be, but we still are waiting long periods in most cases (a few months at least).

Another factor that comes into play with getting short sales approved more quickly is the skills of the listing agent or his/her negotiator. This can make a big difference in approval time, so if you are considering selling your home as a short sale, the most important question you need to ask your agent is how she plans to negotiate with the lender(s) once an offer(s) is received.

In case you haven’t heard, rumors that our housing market is going into a double-dip are once again alive and kicking. Several people have asked what I think of this in relation to North San Diego, and whether it really is true. My answer: yes and no (you didn’t think it would be simple, did you?)

The latest news, just released yesterday by Clear Capital, states that prices fell in March and April, compared to the same time last year and the prior low in March of 2009. They credit the bank owned inventory (REOs) as the main culprit, stating that there has not been a rate of decline this strong since 2008 – the rate was cited as 11.5% over the previous 9 month period. As more than one third of home sales nationwide are REO the company predicts that prices will continue to drop, since these properties typically sell for less than regular sales, thus bringing down comparable solds.

Although it is true that the Western states were cited as particularly effected by the above data and predictions, it is a misnomer to compare this data to the hyper-local North San Diego market. Let’s take a look at Carlsbad to compare:

1. Average median sales price: Although the average median sales price – $540,000 – dropped slightly from January to March (by an average of $35,000, or -0.6% decrease compared to last year), home sales were up 5.8% compared to last year. The median sales price appears to have remained steady over the last several months, with only slight drops. Comparing to the Clear Capital report for the nation, Carlsbad’s prices have fallen slightly less than the national number (.06% to .07%).

It appears that we are seeing prices drop slightly, but not quite as much as in some other areas, such as the midwest, where they have already entered into a true double dip market.

2. Lower number of REOs compared to other areas. Right now there are currently 31 REO properties on the market in all four zip codes that comprise Carlsbad. There are 695 total active properties listed, so REO listings comprise only .04% of total actives.

3. Lower number of short sale properties: There are currently 95 short sales in Carlsbad, or 0.14% of listed homes are considered short sales. This number is undoubtedly smaller than other areas across the country like Las Vegas or Phoenix. In this light I think Carlsbad and other north coastal areas are fairing quite well. In fact, Carlsbad 92011 in the past had been the zip code with the lowest number of foreclosures in the entire county (I am looking into whether this is still the case, but I assume if not is it surely still one of the lowest).

Even some areas in our own county have higher numbers, like Chula Vista for example. Of 769 active listings in Chula Vista, 98 (0.13%) are REOs and 350 (0.45%) are short sales. These numbers are three times as high as Carlsbad’s numbers. Areas with less distressed properties will not likely see drops in price quite as large as one may see in markets saturated with these types of properties.

The bottom line is that yes, prices have dropped slightly in North San Diego. But you really do need to focus on a specific areas rather than the big picture if you are a buyer or seller. Not doing so is a common mistake many people make, so if you are thinking of buying or selling consult a local, experienced agent in your specific area to provide a complete analysis of prices and sales.

If you would like live market data for North San Diego cities (like the chart above and with different categories to choose from), please visit my website at http://www.LaMarRealEstate.org. Click on the resources tab at the top right, and then Live Market Data. You can even sign up to receive weekly reports.

Spring is the time of year where many of us think about renewing, revitalizing and, revamping. I suppose you can call it the season for contemplation. If you are a homeowner it is often the time where you realize there are things around your home that need some attention or maybe just a little tender loving care. But you also may wonder which projects are the most beneficial or cost-effective. Here are some guidelines, whether or not you are planning to sell you home one day or stay there.

Clean, minimize and declutter. We all have busy lives and things can tend to pile up. This is a great time of year to go through your closets, book shelves and magazine racks, and garages or attics. Get rid of the things you no longer use. This is the number one way to improve your living space. Clean your carpets and sofas, try to really minimize – furniture, plants, books, “stuff!” Not only will it improve your home’s feel, but you will get a great sense of satisfaction in purging all the unwanted things. You can make it a fun family lesson by including your children in the clean up; don’t forget to take them along when you donate unwanted items, as it shows them full circle how those things can help better the lives of others.

Don’t forget to go through your pantry. Throw away food items that are expired, and organize your shelves. If you are selling your home this will be appealing to potential buyers as well–a decluttered space allows them to picture making that space their own easier than they are able to do if there is stuff everywhere.

For those who are considering selling their homes soon or down the road, a decluttered and clean home is the best way to obtain offers more quickly. It is also one of the cheaper ways to really show off your space, with the best return on the investment.

Lighten up! Take a good look at your home and assess how bright it feels. Clean your windows and window treatments, remove items that block windows. If you are selling your home this is another important consideration, as buyers don’t tend to like dark spaces. You may want to consider different window treatments if the ones you have don’t allow the natural light to filter through, or you can remove them completely. Another trick is paint–a fresh coat of paint can really affect the lighting and add value to your home with little expense.

Plants: If you have space in your home that is vacant, or if a room looks boring consider adding a few green plants. They add color, are relatively inexpensive, and can really liven up any area. When I help sellers stage their homes for sale plants and flowers are one of my favorite tools. If you don’t have a green thumb there are plant varieties that do not need much maintenance, so talk to an expert at your local garden center. Don’t overdue it with plants, just a few strategically placed can do wonders.

Landcaping: It is easy to completely change the curb appeal of your home -front and back – without spending thousands of dollars, and you can even do it yourself. Flowers and shrubs are the number one way to so this. Choose varying heights and colors and just have fun. If you need guidance flip through a few home and garden magazines to get some great ideas.

If you don’t have a big area for planting consider a potted garden. If your front yard has only grass think about clearing a way for a small flower bed. Making it flowing instead of angled (for example, cutting curvy lines instead of just a square) will make it more appealing on the eyes. If you can’t spend a lot on flowers you can use bulbs, and now is the perfect time to plant them.

It is important to make a plan before you go shop for plants. Pencil out your plans and measure the space so you know how many plants or flowers you need to buy. If you simply cannot figure out what to do you can always consult a professional landscaper, who can help you create a plan and sketch it out. The cost will be minimal but you can work in stages, as time or budget permits, until you finish your project.

Revitalizing rooms: Take a good look at the rooms in your home once you have decluttered and cleaned them. Do they still feel like they need an extra something special to give them new life? You can try new throw pillows , area rugs or pictures on the walls (all which you can purchase inexpensively at stores like Target, WalMart or Home Goods) but it might be even more fun to rearrange the furniture, space-permitting. I have done this in my own home several times, and it really makes a room feel new.

No matter what you do to spruce up your home there are always ways to do so, even on a budget. Getting the whole family involved is a great way to not only spend time together, but also to teach children to take pride in their home.

After months of planning and development I am excited to announce the new website of LaMar Real Estate is now fully functional! I created this site with the needs of the buyer and seller as my first priority.

The new home search links provide more detailed searches, and there are links to helpful tools and articles, localized live market data reports, real estate news, social media links and of course, my blog. In the coming months look for helpful vlogs to be added to the site, which will provide information about basic questions buyers and sellers ask, including information on how to sell distressed properties.

I wanted to capture the beauty of North Coastal San Diego with this new website, and I have highlighted some of the cities and areas in which I work on my Communities page. The great school information is still accessible, and you can enjoy the stunning photos that are displayed.

I am excited to offer this site to everyone interested in North San Diego coastal real estate, as well as those who already live here and want to keep up with local issues, news and trends. I welcome suggestions–if there is anything you would like me to highlight in my blog or something you feel would be helpful on the site, please let me know! If you are not there already you can visit the site at http://www.LaMarRealEstate.org. Enjoy!