A recent article in the San Diego Union-Tribune reported that San Diego home prices will begin to taper off at the tail end of the summer buying season.

San Diego homes saw rapid increases in the past few months, but are now slowing after the tax credit expiration.

The median price of a San Diego County home was $335, 500 in June. It had been $340,000 in May. Compared to a year ago though, San Diego County homes are still showing increases.

Additinally, 2010 marked the highest number of June home and condo sales in 4 years.

“I don’t see a big sales drop. There will be a small dip in the median price but nothing to worry about,” said Mark Marquez, president of the San Diego Association of Realtors. “We still have a solid base of buyer activity, but it won’t be at May and June levels. It’s not as brisk because there are no deadlines to rush to meet. We are seeing a rise in inventory, and people will probably negotiate harder, and they have time to do so.”

The median price for single-family resale’s increased last month. It rose to the highest price since July 2008 reaching $380.000.

New home median prices also rose, going from $399,000 in May to $431,000 in June. New homes accounted for 44% of home sales in June.

Most analysts expect the housing market to remain somewhat stagnant while the effects of the tax credit stimulus continue to trickle through it.

“Right now, I don’t see any reason to see a big surge in sales, just a very slow recovery based on the economic signals we have now,” said Norm Miller, a University of San Diego economist and Co-star Group vice president. “But if you can jump into the single family market now, you can’t do any better. Prices are not likely to go down, and interest rates are so low.”

The housing market is no doubt still affected by the sale of distressed homes, but the number of foreclosures on the market is slowly declining. Foreclosures currently make up 28.4% of the housing inventory, down from 38,6% this time last year.

“Home values going forward will depend on how lenders handle the remaining distress out there,” said DataQuick analyst Andrew LePage. “My sense is if there are not a lot changes in the economy and the level of foreclosures sales doesn’t rise, prices will be pretty flat through the end of the year. It looks like we’re in a period of stagnation that normally follows a large decline.”

Like Norm Miller noted earlier, home prices are quite low right now and interest rates are lower than ever. Now is the best time for buyers to get their hands on their dream house at a price unseen in ages.

So what’s all this talk of a double-dip recession? And how does that affect San Diego County? Well, end of June projections nationwide raised fears that we would see a double-dip recession. With an increase in lay-offs, unemployment, declining home sales, a dip in the stock market, and other various factors, Nobel Prize-winning economist Paul Krugman stated that “the world might be on the verge of depression.”

However, last week’s projections lightened the mood a bit. Retail sales rose and unemployment claims declined. The stock market also rebounded, raising 5%–its biggest rebound in a year.

The San Diego Union-Tribune talked to local economist Alan Gin of the University of San Diego, asking him to give his thoughts on how San Diego County fares in the recession. He along with others are more optimistic than Krugman, but Gin does think only minimal growth will be present for some time, saying that California may possibly perform worse on a national level if state budget issues are not remedied.

Gin says that presently, things are positive for San Diego County. “The economy’s not spectacular, but it does seem that the most likely scenario is that we’ll keep chugging ahead with slow or moderate growth, gradually pulling out of the recession.”

Currently, while unemployment remains high, there are also positive trends in job growth. In fact, job growth has been on the rise for four consecutive months with 9,000 new jobs added in May. San Diego home prices are also on the rise.

Additionally, San Diego County hiring numbers were the strongest seen since May 2007, before the recession even began. Construction and manufacturing were also up.

“There are some mixed signals in the economy, which is what has been troubling people during the past couple of weeks. Although most of the negative signals are at the national level, they could carry over to San Diego.”

On a national level, unemployment is still high, home sales are declining, and job growth is relatively low. These factors contribute to consumer concerns which in turn keeps people from buying, further weighing down the economy.

Gin says, “The worst-case scenario is that San Diego County will get dragged down by the national economy. I think we have enough strength that if the national economy doesn’t go down, we’d continue to grow. But a national downturn affects the number of people who would be coming here on vacation as well as the amount of sales that San Diego-based companies do throughout the nation. Conceivably, that could lead to a downturn here.”

Realistically, Gin doesn’t think San Diego County will see a dip nationally that would be severe enough to drag San Diego into a double-dip recession.

Buying your first home is a milestone in most anyone’s life. One of the obstacles that you might face, however, is getting the money together for that all-important down payment. So let’s talk about ways to save or acquire that money.

First, though, think about how much money you will need. If you are looking at an FHA loan, then the minimum down payment required is 3 1/2 percent of the purchase price and with a conventional loan you will be required to have at least (at least!) 5 percent down.

Ways to save up for a down payment

• Roth IRA – You might be surprised to learn that you can withdraw money without penalty from your no fee Roth IRA for the purpose of financing a home if you are a first time home buyer. The restrictions are that the money has to be in the IRA account for at least 5 years previous to withdrawing it, and there is a $10,000 limit. If you don’t have a Roth IRA, well, now is always a good time to start one.
• Start a “hands off” account – This one is easy – start a savings account, preferably a high-yield one, for your down payment money. Deduct a set amount per paycheck and have it automatically deposited so you don’t ever see the money.
• Frugality – Stop going to Starbucks and sell the Escalade! Or at the very least buy coffee instead of the Venti extra shot Soy Chai Latte and downsize to a Scion XB.
• Increase your income – Although this option may take awhile to pan out, you can try the following: go for a promotion or raise, ask for overtime if you are an hourly worker, get a second job or start a side business.
• Invest – Along with starting your down payment savings account, you can also put some of your money into a Certificate of Deposit (CD). CDs have a higher interest rate than savings accounts, although you have to leave your money in for a specified time like 6 months or a year. You can also try investing in some short term stocks if you feel knowledgeable about that type of investing.
• Tax returns and gifts – If you get a tax return each year, that money can go into your down payment savings account. The same is true for cash gifts for a birthday, graduation or anniversary.

Although saving money seems difficult, if you break it up and save over time you can reach your goal. If you follow some or all these suggestions, you should be well on the way to buying your first home.

If you’ve been considering buying a home in San Diego with an FHA loan, there have been some changes in recent months that you should be aware of. While most of the regulations are geared towards lenders, some of it ultimately affects you as the buyer.

• Credit Scores. New FHA borrowers must have a minimum credit score of 580 to qualify for the 3.5% down payment plan. Borrowers who have credit scores less than the 580 minimum will be required to put down at least 10%. Having less than a 580 credit score will not disqualify you from the loan—it just requires less favorable lending guidelines. If you aren’t far from reaching that 580 mark, there are ways to improve your score rather quickly.

• Up Front Mortgage Insurance Premiums. Premiums have gone up to 2.25% for all FHA case numbers assigned after April 5, 2010. This includes the purchase money mortgages, the FHA’s Streamline Refinance program, and full-credit qualifying refinances.

• Seller Concessions. The FHA has lowered seller concessions to 3% (it was previously at 6%). FHA officials say “the move is designed to eliminate the temptation to inflate the appraised value of a home for sale.”

• Increased Transparency in the Loan Process. All FHA lenders are subject to a neighborhood watch program. According to the FHA, this program shows “lender performance rankings to complement currently available Neighborhood Watch data.” The Department of Housing and Urban Development has made information available on their website that allows the public to view a lender’s loans. The data shows how many loans are delinquent, if there are any serious delinquencies, and lending insight into that particular lender’s financial well-being. Additionally, the program acts as a part of a larger FHA initiative to better monitor and increase enforcement of FHA lenders to make sure that all loans are in accordance with FHA loan requirements and regulations. An FHA press release proposed Amendment of the National Housing Act that requires “all approved mortgages to assume liability for all loans that they originate and underwrite.”

Why Should I Live in Northeast Mesa?

Have you considered moving to Northeast Mesa?

Have you checked out homes for sale in Las Sendas?

Have you researched Red Mountain High School?

Perhaps you love that it has such a great location for access to the freeways, lakes and mountains.

Today I found what might be the best reason to live in Northeast Mesa … Croshaw’s Gourmet Pies.

On their website, the owners of Croshaw’s explain:

All our pie crusts, rolls, cookies, cinnamon rolls, soups and fillings are made from scratch daily.

Everything is made onsite in our gourmet kitchen.

Join us for Lunch served daily!

I visited Croshaw’s today at the insistence of my friend, Justin McHood .  He went there the day before on a recommendation and he fell in love.  I don’t think that he’ll ever eat anywhere else again.  I ordered what he had and they served me a homemade chicken pot pie with a fresh roll on the side … all fresh from the oven that morning.  While we were eating, the friendly staff gave us samples of their delicious pies.  Everything was very good and the prices were more than reasonable.  I’m certain that I’ll be back there soon.

There are many reasons to live in Northeast Mesa such as the city views from Las Sendas, the quick freeway access to downtown Phoenix, the great schools and it is the Valley’s gateway to lakes and Northeast Arizona mountains. If you have considered it but haven’t found the one that tips the scale, Croshaw’s Gourmet Pies might be it.

Maybe I’ll see you there.

Steve Lines

Jumbo loan financing has been somewhat difficult to come by since the start of the credit crunch a few years ago.

But with interest rates at their lowest point in decades, interest rates on  jumbo loans have been somewhat slower to come down to the same decade-lows that conventional rates have seen.  The reason is that many of the lenders who specialized in  jumbo loan mortgages have went bankrupt and quite a few of the larger lenders have tightened guidelines (or eliminated all together) their jumbo loan product offerings.

But it appears that jumbo mortgage rates are now at the point where it makes sense for many people who have a jumbo loan to consider refinancing to take advantage of low rates — jumbo rates that haven’t been this low since 2003.

Courtesy WSJ

According to the WSJ:

Just a year ago, the average rate on a 30-year jumbo mortgage—a loan of more than $729,750 not backed by government-sponsored agencies Fannie Mae or Freddie Mac—was 6.86%, according to Greg McBride, a senior financial analyst at Bankrate.com. Now it is 5.48%—a rate that rivals those available during the height of the credit bonanza.

“In just the past couple of months, jumbo loans have really started to be competitively priced,” says Keith Gumbinger of HSH Associates, a publisher of consumer-loan information.

The recent low rates on jumbo loans has caused an uptick in refinancing activity – with some jumbo lenders reporting that jumbo refinancing up as much as 50% vs. what it was last year.

Arizona Jumbo Mortgage Refinance: Save Big

Anytime you have a large loan amount, saving even one percent on your interest rate will translate into hundreds of dollars in savings each month on your overall mortgage payment.  A simple example pointed out by the WSJ was where a homeowner with a 30-year fixed-rate $800,000 mortgage at 6.86% pays $5,247 a month. If he were to refinance at 5%, his monthly payments would be reduced by $952.

Can you refinance your jumbo mortgage and still pay off other debts? Yes.  Some people choose to refinance auto loan that they may have taken out years ago because interest rates are low and attractive.

Academy Mortgage: Jumbo Mortgage Lender

Academy Mortgage is one of the top lenders in Arizona and has become the choice of many Realtors who refer their clients to us.  Even many home builders will refer Academy the deals that their in-house mortgage company cannot get done.

We have several different loan officers who are experts at jumbo loan products and can easily help you calculate whether or not it makes sense to refinance your jumbo loan when you weigh the costs and the benefits of refinancing.  Our loan officers work with all different types of home financing and have the knowledge and experience to help you get the right jumbo loan for your situation.

Contact us today to see if it is in your best financial interest to refinance your jumbo home loan here in Arizona — or anywhere else!

Home prices in San Diego are on the rise. In May, San Diego home prices rose 7% from this time last year. According to zillow.com, it is the second highest year-over-year increase in the country. In this same period, home prices nationwide dropped 3.8%.

Zillow creates their home-value index by looking at pending sales on homes, homes that have already sold, and also homes that are not on the market at all to determine the median price. San Diego County’s median home price was $375,400. That’s a 1% increase from the month prior, though that’s still 30.1% below the peak median price in October 2005 where the median was $538,200.

Zillow releases a monthly report on home price statistics. Here is a rundown on current numbers:

In pricing increases, San Diego County ranks only second to Virginia Beach, VA—a metro area. But what happens when we compare San Diego to other metro areas in the California area?

San Diego ranks first.

Following San Diego in home price increases are:

• San Francisco – 5.9%
• Los Angeles – 5.3%
• San Jose & Santa Barbara – both had 4.7%

Of the Top 10 markets, 6 of those areas are in California, and in terms of home prices, San Diego has the 9th highest median home price.

The cities with the top gains from a year prior were:

• Del Mar – 13.3%
• Poway – 12.4%
• San Diego – 11.6%

So how does Zillow’s report compare with others?

Last month, MDA DataQuick reported May’s median price as $340,000—a 15.3% increase from last year, and a 4.5% gain from April. Standard & Poor’s/Case Shiller Home Price Index showed San Diego’s home prices rose 11.7% from the year prior, but that report was for April rather than May.

While these numbers come as a breath of fresh air in a stinking economy, we aren’t quite out yet. With the federal housing credits expired, the summer is anticipated to yield some bumpy housing results across the board. High unemployment is another factor affecting the housing market, because realistically, no one is going to buy a house if they are out of work.

Zillow also reported that about 28% of all transactions in San Diego this past May were foreclosure resales. Nationally, foreclosure sales were 19%. Additionally, 34.2% of all non-foreclosure homes sold in the same month were sold at a loss.

More and more people are calling us about the FHA jumbo loan program.

Depending on where you live in the country, currently FHA will allow you to finance up to $729,000 with just 3.5% down?

The reason for this special jumbo loan program is that it was part of the legislation passed by congress recently and chances are that it won’t be around forever. It was a special program that was created by HUD and it could go away at any time.

So if you are considering a home that will need a jumbo loan, be sure to ask your loan officer if the FHA jumbo loan is right for you. You might find that with the recent property declines and with interest rates at all time lows, an FHA jumbo loan might make the most sense for your situation.

That million dollar home in 2006? Chances are that it is now selling for $500,000 and can qualify for a FHA jumbo loan.

Basic FHA jumbo loan guidelines include:

• Up to $729,000 financed. (based on the county loan limits published by HUD)
• 660 FICO score required.
• 3.5% down payment.
• 30 year fixed rates around 5%

FHA jumbo loans take just as much time to close as “regular” FHA loans do – 10 days.  So if you are in a hurry, we are able to accommodate your schedule as well.

And if the FHA jumbo program goes away before you can get qualified and close your FHA jumbo loan?

Don’t say we didn’t warn you.

The Fannie Mae Home Path mortgage program is popular with homeowners here in Arizona who have found a home that is currently owned by Fannie Mae.  The Home Path mortgage can help them get an even better deal on a bank owned home by providing excellent financing — even better than you can find with FHA.

HomePath Mortgage Financing

The HomePath mortgage is for people who are buying a home owned by Fannie Mae with the intent that it will be their primary residence.  It is fairly easy to tell if a property is eligible for HomePath financing because usually it will be noted on the MLS or you can also search on the HomePath.com website.

HomePath mortgage benefits include:

• Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
• You may qualify even if your credit is less than perfect
• Available to both owner occupiers and investors
• Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
• No mortgage insurance
• No appraisal fees
• No declining markets policy
• No more than 10 financed properties
• No prepayment penalties

HomePath Renovation Mortgage

If you are looking at a home that is in need of a few repairs, the HomePath renovation mortgage may be the right financing package that will get you the funds for repair that you want.  You will often see homes that are eligible for this program with the above logo on the sales sheets and will usually find more information in the remarks section of the MLS.

HomePath Renovation Mortgage Highlights:

• Financing to fund both your purchase and light renovation
• Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate)
• Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer
• No mortgage insurance

So if you are in the market of buying a home that is currently owned by Fannie Mae – whether it needs repairs or not… be sure to ask your Realtor or loan officer about the HomePath mortgage program.  We are happy to help you with your HomePath mortgage financing, call us to find out more details.

I wonder what the hottest real estate markets are in 2010.

Arizona?

Uh, no.

Nevada?

Try again.

Florida?

Sand = no.

Really?

Just a few short years ago, these states were on all of the “hottest real estate markets of 2006″ lists…

And now they aren’t.

Think A-L-A-B-A-M-A.

And my only question is… I wonder if Alabama will be in the dumps in a few short years.

Ah, the joys of real estate. No wonder I can’t leave it alone.

2010 Hottest Real Estate Markets