Home prices are rising and have been doing so for the last three months.  According to Standard and Poor’s newest Case-Shiller index report, prices have actually showed a decline, but that fact has been disputed by other reports. In North San Diego, I agree that prices seem to be rising and market times, not including short sales, are decreasing.

The discrepancy between the Case-Shiller report and other reports that have studied markets across the country is that the other reports focus on when contracts are signed – it uses the prices agreed upon at that time, even though it could be months until the properties close escrow.  Case-Shiller uses the prices reflected at the close of escrow, so there is quite a bit of lag time, up to several months, which skews the results.

Market Trends: The general consensus is that if you focus on what is trending, rather than waiting until close of escrow down the road, you get a clearer picture of price increase. Of course, there is the possibility that some of these sales may not close escrow, or may not appraise at the agreed price, but there is still a valid argument that focusing on what people are WILLING to pay and do get into contract for is a more accurate measure of hyper-local market analyses.

North San Diego: From a personal standpoint, I agree that prices seem to be increasing in the North San Diego market. We are seeing a lot of multiple offer situations, especially in the lower price ranges (under $400,000) across the county. Also apparent is that that the days on market time seems to be decreasing. In Carlsbad alone the average market time (for all four zip codes combined) for detached homes is 76 days, but if you scroll through all the pending listings you will notice many that sold in under a week. For attached homes in all four Carlsbad zip codes the average market time is 84 days, but again, you will notice a handful of properties that went into pending status quickly.

Sales Time Trends and Short Sales: Another trend I am seeing is that short sales contracts are being presented and accepted faster, especially in the under-$400,000 price range, with both attached and detached homes. These sales go into contingent status (meaning an offer has been signed and accepted by the seller pending approval by the short sale lender(s)) much quicker these days, but the market times are longer because the parties await short sale lender approval. The wait time, which can take months, throws off the market time numbers and makes them longer, so that has to be considered when looking at the sale times.

All in all the news is positive that the market here in San Diego is improving,which is great news for homeowners and buyers alike. According to Altos Research, the statistics indicate that the tables have turned slightly in the condo market, making it a seller’s market for the first time in a long time; the detached home market is still a buyer’s market. Hopefully the road ahead will continue to bring us closer to a more “normal” market.

Please feel free to contact me if you would like any detailed market reports and statistics sent to you, and I will be happy to do so. Send your request to Rachel@LaMarRealEstate.org.

If you are looking for a home that is bright, clean, close to the beach and has been recently upgraded to the hilt, I have the home for you! My new listing at 1477 Sapphire Drive in Carlsbad is in the wonderful gated community of Mar Brisa, just moments from the beach, dining, shopping, walking trails and in the wonderful Carlsbad school district.

Here are some of the amenities this home offers:

•4 bedroom plus optional bedroom downstairs (or den/office), 2336 square feet, great floorplan

•  Granite kitchen counters

•  New Travertine flooring downstairs with decorative inlays

•  New custom stone floor-to-ceiling fireplace in family room

•  New hardwood flooring in master bedroom – which has ocean peek-a-boo views and plenty of closet space

•  New carpeting upstairs

•  Surround sound system downstairs with recessed speakers, and the family room is wired for Apple TV

•  3 car garage with built-in storage

• Private, nicely landscaped backyard with fire pit

• Newer kitchen appliances, and refrigerator, washer and dryer convey with sale

• Gated community with community pool, two spas, tot lot and exercise lot

If you would like to schedule a showing for this home, please call me at 760-310-9466. For more information and to view more photos and see the virtual tour, please click here.

Once in a while a property comes along that is very special…that time has come. Welcome to 4029 Sunnyhill Drive in Carlsbad – a wonderful home on a large half-acre, unobstructed ocean view lot, just moments to the beach, shopping and dining.

Highlights:

• Ocean views! Expanded view potential with second story addition
• Updated kitchen with granite counters, stainless appliances
• Detached guest house and office, plus 3 greenhouses
• Outdoor kitchen with tandoori and pizza ovens, BBQ, kegerator
• Gated property
• Ranch style, single story home

• Large, private lot 23000 square foot lot
• 2565 square feet of living space (guest house and office not included in square footage)
• Resort-like pool and spa, recently resurfaced
• Basketball court, tennis backboard, large grassy area
• Mature landscaping with multiple fruit trees
• Moments to beach, shopping, dining, Carlsbad Village, schools
• No HOA or mello roos
• Carlsbad schools
• MLS number 120000115

To view this property or get more information please contact Rachel LaMar, Broker, at 760-310-9466 or Rachel@LaMarRealEstate.org. Visit property website for photos, information. CA DRE license 01399682. Property MLS number 120000115.

This coastal South Carlsbad view home has been exceptionally maintained. Nestled in the gated hilltop community of Mar Brisa, this home offers the largest and most popular floorplan and sits on one of the biggest lots. Open Sunday, October 16, from 1:00 to 4:00 – plus win gift cards and take home free goodies just for stopping by!

Features include:

• 4 bedrooms + loft/2.5 bathrooms, 2570 square feet, and ocean breezes
• Beautiful views of mountains, rolling green hills, canyon and
golf course, and peek ocean views from upstairs loft
• Largest floorplan in gated coastal community of Mar Brisa
• Northeastern exposure, with lots of sunlight throughout the day
• Travertine flooring with custom inlays downstairs and on staircase
• Chef’s dream kitchen with center island, breakfast area
• Cathedral ceilings
• Formal dining room
• Cozy family room with fireplace
• Master suite with endless views
• Sunken tub and walk-in closet in master bathroom
• Custom paint throughout
• Big, private backyard (8000+ square feet) with large patio area for
entertaining or dining al fresco.
• Lots of storage throughout
• 3 car garage with epoxy flooring
• Ceiling fans
• Upstairs laundry room with sink
• Great loft area for den/office/playroom/gym, or convert to
5th bedroom
• Short stroll to community pool/spa and tot lots
• Carlsbad schools!
• Low HOA fees, no mello roos taxes
• MLS #110049083

This home is truly exceptional…stop by and see it! I am hosting a gift card drawing just for visiting…plus, pick up some free environmentally friendly shopping bags and Halloween candy! For more photos and information please visit http://1452SapphireDrive.2seeit.com. If you have questions or would like to schedule a private showing please call me at 760-310-9466 or email me at Rachel@LaMarRealEstate.org.

On Friday the House of Representatives failed to extend the current conforming loan limits, which are set to expire on September 30. This was a big blow to the real estate market and to buyers and sellers. But does this mean the fight for extension is over?

Let’s take a look at the situation so that you can understand the problem. Current conforming loan limits are set at $729,750. They were raised to that number in 2008, to allow buyers to obtain financing for larger mortgages. This was a great help to buyers in ares where housing is higher, like here in San Diego county. If the limits do not get extended they will drop down to $625,500 in some areas, lower in others. Again, this really effects higher priced areas, such as along the west and east coasts.

Some argue that dropping the limits will actually be good for housing, as it will assure that only qualified buyers will get loans. However, in the higher priced areas it will force buyers to have larger down payments, or to buy homes priced lower. This will effect the higher end market, and in pricier areas this will effect the market, period. This is not good news for those who need to sell, and the long-term effect is that it will likely bring down prices substantially, or stagnate markets further…neither of which are positive options in this economy.

The Obama administration says that allowing the limits to expire will cause more private money to flow back into the housing markets. I am not a mortgage expert, but wouldn’t these have much higher interest rates? Allowing these limits to expire is going to effect an already fragile housing market.

The next opportunity to reverse the loan limit reduction will be at the end of the year. Let’s hope we get there, as now is NOT the time to distress the housing market any further.

LaMar Real Estate is proud to offer for sale this beautiful home located at 1452 Sapphire Drive. Situated in coastal Carlsbad in the gated ocean view hilltop community of Mar Brisa, this home has been impeccably cared for by the original owner. With 4 bedrooms, a loft, 2 and a half bathrooms and 2570 square feet, this popular “Venice” model offers the largest floorplan in the community. The seller will entertain offers between $699,000 and $719,000.

When you walk into the front door you are surrounded by natural light, cathedral ceilings custom paint throughout, and stunning travertine floors with custom inlays downstairs and on the stairs. The large living room and formal dining room look out to the beautiful backyard and views beyond. The family room has a stone fireplace and plenty of room, and the bright, spacious kitchen is fabulous for the chef and entertaining.

The large master suite has more views – out to the canyon, The Carlsbad Crossings golf resort, mountain ranges and rolling hills. With a sunken tub and big walk-in closet, the master bathroom fills all of your needs.

The upstairs loft – an optional 5th bedroom – provides a great space for a den, playroom, office or gym, and includes a peek view of the ocean. The upstairs laundry room provides convenience and a built in sink. Other features include an expoxy floor three car garage, ceiling fans, upgraded neutral carpeting upstairs, and custom drapery.

Aside from the many exquisite interior features of this home, the beautiful backyard is definitely something to brag about. Situated on a lot of over 8000 square feet, this is one of the larger lots in the neighborhood. The sellers created a large patio area for dining al fresco, and a path that circles the center lawn area (great for strolling or for small bikers). Mature landscape and flowers provide plenty of privacy. The views extend to the rolling hills and mountains, and out to the San Bernardino mountain ranges, plus golf course and canyon views. It truly is a personal oasis.

The Mar Brisa community features a resort like community pool and two spas, barbeques and tot lot, plus an exercise lot. HOA fees are very low and there are no mello roos taxes. Carlsbad schools too! 1452 Sapphire Drive is move-in ready and waiting for a buyer. To see more pictures and get more information on this home please visit http://www.1452SapphireDrive.2seeit.com. Please contact Rachel LaMar if you have any questions, or to schedule a showing, at 760-310-9466.

Have you been considering buying a home, maybe for the first time, maybe to move up or down? Have you been waiting for the market to hit bottom, for prices to fall, for loan rates to get lower? Guess what? It is that time. Yes, I am a Realtor, and my telling you this may sound self-serving, but let me tell you why that is not the case:

1.  Rates are still low. They will get higher – that is something I would be money on. There are a few reasons why. One is that they have been historically low for a long time and it is inevitable. Another reason is that there could be some big changes coming up in the loan industry (see below), which will make them rise.

2.  Qualifying for a loan is not going to get any easier. Lenders are still reeling from the housing crash and make it difficult to qualify new borrowers (believe me, I have seen it happen to my own clients). If the new rules pass in September, come October 1 loan limits will decrease, meaning buyers will have to put MORE money down in order to qualify for a loan, and limits will be lower so that means less of a loan (buyers will have to buy smaller homes, or maybe even consider different areas/neighborhoods).

3.  Down payment requirements could rise. If the loan limit rates decline the downpayment amounts will increase. Borrowers will have to pay more money up front to get a loan. This will make buying a home a pipe dream for many Americans.

4.  There are still some great loan products out there. FHA loans require much lower downpayments and better interest rates. If the new limit restrictions pass they will have an effect on these loans.

5.  Selling a home could get much more difficult. If the loan rates change it may effect sellers the most, especially in higher priced areas like San Diego county. Buyers who could qualify for a loan to buy a home may no longer be able to afford that much house, so sellers may have a hard time finding qualified buyers. Many homeowners may not be able to sell their homes, which could lead to more foreclosures. Property values will go down, but who will buy these properties? One theory is that the lenders will simply rent them out rather than try to sell.

6.  It is a great time to negotiate! With the market slower than usual for the time of year, and the many well-priced homes out there that are available (especially short sale and lender owned properties), buyers are in the driver’s seat as far as negotiations are concerned. There are some stubborn sellers out there, but if you encounter that situation you can always find another property that is ripe for negotiation.

7.  Learn from who is buying now. If you look closely, especially in the attached home market, you will see many investor buyers. As I have said before, this is a sign. It is a sign that now is the time to buy. I am personally working with multiple investor clients right now, and they are getting great deals on short sale and lender owned properties.

I get asked all the time what the market is like, how we are faring here in North San Diego. The market is doing much better than in some other areas of the country, but we are still struggling a bit. Prices have come down, and will likely continue to do so. If the new loan limit reductions pass it will create qualification problems for many buyers and for sellers as well. Right now you can still lock in a very low rate (today’s conforming rate on a 30 year fixed mortgage is  4.5% with no points). There is a decent amount of inventory out there.

So, here is my pledge to you: I will do my best to help you find the right property, at the right price – if you don’t there is no pressure at all. Use me as a tool to help you, because that is what I am here for. I will provide all the information you need about any home we find. You don’t need to sign any agreement, I won’t make any demands on you. I offer you honesty and professionalism, and all you have to do is call me. I will be around all weekend. 760-310-9466

It’s one of the questions of the moment, and one that many real estate agents and mortgage brokers fear most at this time: what will happen to the housing market once the conforming loan limits drop at the end of September? How will buyers and sellers be affected, if at all?

Let’s start at the beginning: conforming loans are those that are eligible for guarantee by the government. Because of this, they tend to have lower interest rates. The cap on the amount that the government can guarantee used to be lower, but in 2008 Congress raised the cap to $729,750 in some markets (typically those with higher priced homes, like in California). This made lenders feel more secure in doling out loans, because they knew they would be covered by Fannie Mae or Freddie Mac if the homeowner defaulted on the loan, thus making them less risky.

Also potentially on the chopping block are FHA limits, and lowering them could impact 40 states and hundreds of counties, according to the National Association of Realtors (NAR). Since FHA backed loans are popular right now across a broad spectrum of buyers, this could also be a problem for those seeking to qualify for these types of loans. Many organizations, including NAR, have been making appeals to Congress to not allow limits to be reduced.

Come October 1 these higher limits are set to revert back to the old limits – $625,500 in some markets , such as pricier home markets like San Diego County. Many reports have predicted this will be a huge blow to buyers trying to qualify for loans, and some lenders are already starting to scrutinize current applications in light of the coming changes. How might this affect the borrower?

Interest rate increases: With loan limit decreases higher interest rates are likely. If a borrower needs a loan that exceeds the new caps she will need a jumbo loan, which has a higher rate. This may cause the buyer to look for homes that are smaller and cost less – or simply to hold off on buying. Either way this could effect housing market recovery.

Down payment increases: Buyers will need to make bigger down payments should they need loans that are over the lowered limits, in order to get jumbo loans. Again, this could lead to inventory stagnation in the middle part of the market, with buyers starting to focus on lower-priced homes or just opting to wait.

Price decreases: With the changes in loan limits and thus, buyers being able to qualify, comes the inevitable – sellers may have to reduce home prices to entice buyers to buy (so that they can qualify for a loan without having to get a jumbo loan).

Given the current state of the housing market and economy, this move to reduce loan limits doesn’t seem like a good one…however, there is a ray of hope in the scenario: if you are a buyer you could benefit immensely from prices going down. You may have to adjust your criteria a bit – maybe a smaller home or one that needs a little TLC, but all in all it could have a positive outcome for buyers. Sellers are the ones who will have a more difficult time with the changes.

Buyers still have time to research, find a home and lock in a rate. If you are a seller, you still have time to price your home WELL. This is certainly not the time for overpriced listings, so have a frank discussion with your agent and utilize the comparables to come up with a price that will get those buyers in the door.

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!

“How is the market doing?” This is the most frequently asked question I receive. Neighbors, friends, clients all want to know what is going on in the market. Here in North San Diego the market is doing quite well, actually, and things seem to be picking up.

The HomeDex statistics show that while inventory levels in San Diego county declined in February (slightly over 12.5%), both pending and sold numbers were up. Pending property numbers rose for the second month in a row. Prices have dropped a bit as well, with both single family homes and condos showing lower median prices than the same time last year (2.2% drop in median price from the same time last year for single family homes, 10.2% for condos). Heading into the spring and summer buying seasons this is good news for buyers, and if the inventory picks up it will continue to be a strong buyer’s market.

The one thing we have seen quite a bit of is cash buyers. In February these buyers accounted for 33% of existing home sales, while first time buyers accounted for 34%, according to the National Association of Realtors. Some cash buyers are investors and others are purchasing first or second properties, but all in all there is a rise in these transactions.

Another thing that seems to be on the increase is the number of buyers from out of the country. According to the National Association of Realtors 28% of U.S. Realtors have reported working with at least one foreign buyer in 2010, an increase from 23% in 2009. Reports indicate that Asian buyers are still active in the market, and recently one report said that Israelis are snatching up commercial real estate in the U.S. I have buyers from Australia and Asia right now, so I agree with the reports that there is an influx of out of area buyers.

The dollar is weak in the U.S. compared to other currencies, so now is the ideal time for people to buy. It will be interesting to see whether the disasters in Japan have an effect on Japanese buyers. For many of these buyers our real estate is inexpensive. In fact, one person I know told me that the price per square foot in China in the cities is about $600, so our real estate here is a great buy to those who have the opportunity.

San Diego county is one of the top-rated tourist destinations in the country. Our beautiful weather and coastal, outdoor lifestyle are the envy of many, and if you are in the market to purchase property there is no time like the present.