san diego

San Diego One of the Markets to Watch in 2011

by Steve Lines on October 13, 2010
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The Urban Land Institute analyzed the top investment markets to watch in 2011, and San Diego ranked in the top 10, the San Diego Union-Tribune reports.

The 32nd annual “Emerging Trends” report is based on 275 interviews of industry experts. They noted that coastal markets like San Diego will fair better than other markets across the nation.sdmarket 300x180 San Diego One of the Markets to Watch in 2011

“The transition from more to less will be difficult and it will involve getting used to a smaller real estate industry,” said Stephen Blank, ULI’s principal researcher and adviser in the study. “Harsh realities aside, real estate is coming off the bottom with improved prospects across all markets.”

On a 1-9 scale, San Diego scored a 5.63–but Washington, the top position, scored just a 7.1.

Market strategists likened the market to that of Los Angeles, though San Diego lacks an international airport hub. Unfortunately, as domestic businesses grow bigger, they move headquarters which makes traveling a bit of a pain. On the contrary, close-by transportation areas can cause unwanted noise and traffic.

San Diego, like everywhere else in Southern California, has seen a significant drop in housing prices and as of August, home prices are still being slashed.

The overall assessment concluded that:

In particular, downtown condos are badly oversupplied. Demand builds back for housing in better neighborhood: more buyers with cash want to take [advantage] of market bottom [near] Pacific coastlines.

“What’s not to like about arguably the country’s most desirable climate? Public-company homebuilders buy relatively cheap residential land to prepare for an eventual upturn. On the wobbly retail front, put a hold on any more lifestyle centers.”

sdsold 300x208 San Diego One of the Markets to Watch in 2011As of September, reduced home prices seem to have leveled out. Many market analysts agree that the national market has bottomed out and is slowly headed on its way back up. San Diego is a popular destination for a multitude of lifestyles. For buyers, the current prices are a steal and a great time to look for an affordable new home that fits their family needs

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FHA Changes in Loan Requirements and Regulations

by Steve Lines on July 13, 2010
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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.fha FHA Changes in Loan Requirements and Regulations

  • 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.”

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San Diego Home Prices are Rising

by Steve Lines on July 9, 2010
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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. sandiego 300x224 San Diego Home Prices are RisingBut 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.

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