The kitchen that ate the house - MSN Real Estate

The kitchen that ate the house - MSN Real Estate

Got a Monet or gold bar? Here’s a home loan

Pablo Picasso got a home loan.

Many wealthy home buyers are getting loans that are secured with high-value assets, such as fine art and investment accounts. While many of these buyers could purchase the home outright with cash, they’re choosing this loan in order to maintain liquidity.




Borrowers can get them in as little as one to 30 days after applying, compared with the two- to three-month waiting period that currently exists for mortgages with many lenders. They also don’t require a home appraisal, which has derailed many mortgage applications over the past few years.

In many ways, experts say, the process allows borrowers to have the best of both worlds. They retain the asset that they’re using as collateral for the loan—the artwork.

for instance, continues to hang in their home or the investment account remains untouched—and the loan they get can charge a low rate, often ranging from roughly 0.71% to 3.25%.
In most cases, borrowers turn to private banks and wealth-management divisions of large banks where they maintain significant assets.

Jim Minich, managing director of capital advisory services at Harris myCFO, a subsidiary of BMO Financial Group, cites an instance when an art collection mostly comprised of Picassos was used to purchase a roughly $12 million apartment in Manhattan.

Many institutions say demand is rising. J.P. Morgan Private Bank says the dollar amount of loans secured by clients’ assets for real-estate purposes increased 20% last year. At Wells Fargo Private Bank, about one-third of all the loans on its books are secured by clients’ liquid assets, such as investment accounts. Moreover, applications for these loans—used for a variety of purposes, including purchasing homes—are submitted daily. It also receives one to two requests per month for art loans, up from one to two a year in 2010. “There’s definitely been a surge of people using art as collateral for loans,” says Suzanne Gyorgy, global head at Citi Private Bank’s Art Advisory and Finance Group.

Many lenders will accept other tangible assets as collateral as well. Tom Clarke, U.S. head of capital advisory at J.P. Morgan Private Bank, says this can include gold bars and private jets that clients own outright

Lenders for their part are encouraging the trend. U.S. Bank’s Ascent Private Capital Management, whose clients have at least $50 million in net worth, says it’s building a program around art-backed loans that it plans to launch next year. (It currently considers art loans on a case-by-case basis.) And PNC Wealth Management says it has been talking to its clients more about loans secured by investment portfolios as an alternative to mortgages.

Lending thresholds vary, but if the loan is being secured by an investment portfolio, clients can borrow up to 95% if that account is comprised of cash, up to roughly 85% if it’s bonds and up to roughly 75% with diversified stocks. With art, most lenders will provide up to 50% of a work’s appraised value.

Still, these secured loans carry significant risk. Interest rates are mostly variable, potentially exposing the borrower to rate increases. Borrowers typically get one to three years to repay—though they can apply to renew the loan. Monthly payments are often interest only, and at the end of this period borrowers have to be prepared to pay the entire principal balance. If borrowers are suddenly unable to pay, they could be at risk of losing part or all of the asset, though most lenders say they’ll look for solutions to avoid this situation.

Other things to consider:
Some loans can be subject to margin calls: If a chunk of a borrower’s investment portfolio is wiped out by market losses, the lender could require the borrower to pump more money into the account to lower his loan-to-value ratio.

Art loans rely on appraisals: With an art loan, the work is typically reappraised annually and when the owner wants to renew the loan. If the art has lost value, the borrower may have to pay the difference between the amount he borrowed and the new value.

Can’t avoid underwriting: Most institutions will review borrowers’ credit scores and require income documentation to determine how much to lend and at what rate. They’ll also look over the assets they have with the lending institution.

Make your home offer stand out with a handwritten love letter

May Buying Advice: In some hot housing markets, a personal touch can help your purchasing plea rise above the others. Just as temperatures are starting to rise, so are multiple offers on prime properties in some recovering markets. To stand out from the pack, an increasing number of buyers are taking the old-fashioned approach and penning a love letter to sellers telling them what they adore about the house and why they are the best suitor to end up with it.
In this installment of Buying Advice, we'll look at what buyers stand to gain by writing these letters and what the letters should contain to be most persuasive. We'll also check in with the latest housing numbers and answer a reader's question about how to find first time homebuyer assistance.
Courting the owner
In this digital age, there's something nice about getting a personal letter written (or even typed out) on paper, even if it comes from someone you are doing business with. That's why an increasing number of sellers are writing letters to owners when competition for properties gets stiff — especially given that bids considered too high often won't meet lenders' appraisal rules.
Anna and Buzz Hays recently wrote a letter to shore up their bid on a midcentury home in a coveted Glendale, Calif., neighborhood. "I thought about it and said, 'I might not have all cash to pay for the house, but I do have writing ability and I can use that,'" says Anna Hays, a teen-fiction writer.
She described what she liked about the home, including how well-maintained it was, the beautiful rock waterfall by the pool, the friendly neighbors and the "nature and calm" in the wooded neighborhood that surrounded it. She also included a few lines highlighting her and her husband's résumés and assured the couple selling their home of 15 years that they would take steps to make its pool safe for their school-age twins.
The strategy worked. Hays and her husband beat out the other three offers and recently closed on the property. "They called me when the bid was accepted and said it was because of the letter," she says.
Is this tactic a good way to set your bid apart from the pack, or is it a waste of time? We asked agents what they thought about buyer letters and what they would include if they wrote one. Most said a sincere letter was worth a shot for a standard sale, not a bank-owned property.
"I have seen them work miracles with sellers, and I have seen sellers put them aside and move on with another offer," says Ofe Polack, an agent with Coldwell Banker in Manchester, N.H. "Like everything else in life, it takes two to tango."
However, agents caution that buyers should never go rogue and submit a letter without their agent's knowledge. "Buyers are never to have direct communication with sellers," says San Diego agent Kim Drusch of Century 21 Award. She says she often submits photos and background stories of the family she is working with, if she thinks the seller would be swayed by the information.
"A traditional seller typically is devoted to the home they raised their family in," Drusch says. "They, of course, are vested in who takes over 'their' house from this point forward."
Buyers should convey several things in a letter, including:

• Specific features or things that they like about the house and the community. "I've … had sellers read letters and the compliments made them so happy that they've chosen lower offers because of the letter. But not much lower," says Joseph Moore, an agent with Bridge Realty in Minneapolis.
• How long they've been looking.
• A little bit about themselves, including names and ages of any kids. "If the buyers knows that the seller raised a family in the house, I would appeal to those emotions," Polack says.
• Anything that speaks to their purchasing power or creditworthiness.
• A commitment to the house and a willingness to do "whatever it takes" to land it.
• Anything else buyer and seller have in common.

Keep it short and sweet and don't give so many compliments that the sellers think they've underpriced the home, agents say. And don't expect your prose to bridge a $30,000 gap between your offer and the next bidder's.
"If you're sincere," Hays says. "I don't see how you can go wrong,"

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latest market trends in North San Diego County Coastal

Welcome to the latest market trends in our area!
As a real estate professional, I strive to keep in touch with my clients and provide them with information that I hope they will find useful. This newsletter is an opportunity to let you know about the state of the market and current trends. It may even touch on ways that you could enhance your home's value. I hope the market data and articles will help you with understanding real estate today and help you with your real estate decisions. If you have any questions, please do not hesitate to contact me.Joyce Doherty

North San Diego County Coastal area Real Estate Sales Data

Average Listing Price (last 12 months)

Average List Price in December

Single Family Homes	$2,233,950	Condos/Townhomes	$575,211	Multi-family Homes	$1,179,818

North San Diego County Coastal area Real Estate Sales Data

Days on Market (last 12 months)

Current Average Days on Market in December

Single Family Homes	126	Condos/Townhomes	113	Multi-family Homes	153

North San Diego County Coastal area Real Estate Sales Data

Price Reduction (last 12 months)

Recent Price Reductions in December

Single Family Homes	5.0%	Condos/Townhomes	4.6%	Multi-family Homes	1.8%

Joyce Doherty

Cell: 858.344.3175
Tel: 858.793.3600 ext. 109
joyce@pacificcoastal.net
www.pacificcoastalproperties.com

Existing-home sales at highest level in 3 years

Sales of existing homes continued to rise in November, hitting their highest level in three years.
At the current pace, 5.04 million existing homes would be sold in 2012. That’s up 14.5% over last November, the National Association of Realtors

Sales were up 5.9% percent from October. The national median home price was $180,600, up 10.1% from a year ago. November marked the ninth month of year-over-year price increases.

Momentum continues to build in the housing market from growing jobs and a bursting out of household formation," Lawence Yun, the NAR’s chief economist, said in a news release. "With lower rental vacancy rates and rising rents, combined with still historically favorable affordability conditions, more people are buying homes.”

The number of homes for sale continued to fall, which is likely contributing to price increases. In November, 2.03 million existing homes were listed for sale, enough to last 4.8 months at the current sales rate and 22.5% fewer than last year. A six-month supply is considered a balanced market.

The last time fewer existing homes were for sale was December 2001, and the current supply is the lowest since September 2005, when there was a 4.6-month supply for sale.
First-time buyers made up a smaller proportion of all buyers than they did a year ago -- 30% versus 35%. The investor share remained the same, at 19%. That suggests move-up buyers are inching back into the game. All-cash sales accounted for 30% of sales, up slightly from 28% last November.
The percentage of sold homes that were distressed sales stood at 22%, down from last November’s 29%. Yun predicted the percentage of distressed properties, which usually sell at a discount, would fall into the teens next year.
"Existing-home sales have improved this year," Joseph Trevisani, the chief market strategist for Worldwide Markets, told Reuters. "Purchases are supported by the lowest mortgage rates on record. The housing market is considerably weaker than the statistics portray. Jobs, not interest rates, are the key to further improvement, but those lower rates from the Fed are putting the dollar on the defensive."
Joyce Doherty Real Estate Pacific Coastal Properties Solana beach brokers agents

Frost advisory issued for Wednesday night

John Gibbins

The surf was blow out Tuesday at Dog Beach, Del Mar. But it is building nicely today.

The cold air from Tuesday's Pacific storm settled to the ground across much of San Diego County overnight after the winds died out, widely dropping temperatures into the 20s and 30s for the first time this fall. San Diego didn't get quite that cold -- but the mercury fell to 41 in Balboa Park. The cold came as a surprise to many; the National Weather Service did not forecast such low temperatures across such a wide area. Even the beaches were cold. The big change also was caused by the quick dispersion of the clouds. There was nothing to hold warmer air near the surface.
Today's highs will reach the 60s at the coast and 50s inland. But the National Weather Service already has issued a frost advisory for Wednesday night, saying that this evening could turn out to be even colder.
Forecasters say skies will be mostly clear today, and clear again tomorrow, when San Diego State and Brigham Young square-off in the Poinsettia Bowl at Qualcomm Stadium. Kick-off: 5 p.m. Temps will be in the upper 50s.
Winter officially begins on Friday.
Sample of temperatures at 6 a.m. Wednesday:

Mixed news emerges on foreclosures

Completed foreclosures reached their highest level in nine months in November, while foreclosure starts were at their lowest level in almost six years.
Confused? The mixed picture on foreclosures reflects a number of factors, including the fact that lenders are engaging in more foreclosure alternatives, such as mortgage modifications and short sales. The statistics, compiled by RealtyTrac, also reflect the differing pace of foreclosures in judicial and nonjudicial foreclosure states

"The drop in overall foreclosure activity in November was caused largely by a 71-month low in foreclosure starts for the month, more evidence that we are past the worst of the foreclosure problem brought about by the housing bubble bursting six years ago," Daren Blomquist, vice president at RealtyTrac, said in a news release. "But foreclosures are continuing to hobble the U.S. housing market as lenders finally seize properties that started the process a year or two ago — and much longer in some cases. We're likely not completely out of the woods when it comes to foreclosure starts, either … ."
According to RealtyTrac, foreclosure starts in November were down 13% from the previous month and 28% from a year ago.

But bank repossessions, or completed foreclosures, were up 11% over October and up 5% from a year ago.
The foreclosure picture was mixed geographically, too. A total of 23 states plus the District of Columbia showed higher foreclosure activity than at the same time last year. But the national statistics were driven by big year-over-year declines in California, Georgia, Michigan, Texas and Arizona

Foreclosure starts were down from a year ago in 28 states, including Oregon (84%), Pennsylvania (67%), California (63%), Arizona (59%) and Georgia (51%).
But foreclosure starts rose in 18 states, some exponentially, with increases of 538% in New Jersey, 455% in Arkansas, 209% in New York 97% in Washington and 95% in Connecticut.
The largest numbers of foreclosures were in Florida and California, and the 10 cities with the highest rate of foreclosure activity were all in those two states.
The foreclosure rate in November was highest in Florida, at a rate of one foreclosure filing for every 304 housing units, compared with a national average of one in 728. The other states with the highest foreclosure rates were Nevada (one in 390), Illinois (one in 392), California (one in 430) and South Carolina (one in 455).
"This all leads to confusion over whether the market is getting better or worse," Blomquist wrote at RealtyTrac. "Generally I would argue it's getting better, but the unintended consequence of all the foreclosure prevention efforts of the last few years is a hidden inventory of properties in foreclosure limbo. The jump in bank repossessions in November is evidence that these properties are there and that some of them are being foreclosed. What's unknown is how many will end up as foreclosures in 2013 and even beyond."

Solana Beach recent home values

Sample recent home sales in Solana Beach, CA (zip code 92075):

• 707 S SIERRA AVE 29: $569,000 on 2012-07-12 (COOP OR CONDO)
• 6131 VALENCIA VILLAS 4A-6: $320,000 on 2012-07-10 (COOP OR CONDO)
• 817 BEACHFRONT DR C: $795,000 on 2012-07-06 (COOP OR CONDO)
• 839 VALLEY AVE: $305,000 on 2012-07-05 (COOP OR CONDO)
• 135 S SIERRA AVE 30: $1,100,000 on 2012-06-27 (COOP OR CONDO)
• 654 E SOLANA CIR: $358,000 on 2012-06-16 (COOP OR CONDO)
• 725 SAN MARIO DR: $955,000 on 2012-06-14
• 481 MARVIEW LN: $322,500 on 2012-06-13 (MULTI-FAMILY (2 - 4))
• 838 STEVENS AVE: $310,000 on 2012-06-12 (COOP OR CONDO)
• 245 TURF VIEW DR: $575,000 on 2012-06-12 (COOP OR CONDO

Homes for sale in Solana Beach, California

Sample recent home sales in Solana Beach, CA (zip code 92075):

• 707 S SIERRA AVE 29: $569,000 on 2012-07-12 (COOP OR CONDO)
• 6131 VALENCIA VILLAS 4A-6: $320,000 on 2012-07-10 (COOP OR CONDO)
• 817 BEACHFRONT DR C: $795,000 on 2012-07-06 (COOP OR CONDO)
• 839 VALLEY AVE: $305,000 on 2012-07-05 (COOP OR CONDO)
• 135 S SIERRA AVE 30: $1,100,000 on 2012-06-27 (COOP OR CONDO)
• 654 E SOLANA CIR: $358,000 on 2012-06-16 (COOP OR CONDO)
• 725 SAN MARIO DR: $955,000 on 2012-06-14
• 481 MARVIEW LN: $322,500 on 2012-06-13 (MULTI-FAMILY (2 - 4))
• 838 STEVENS AVE: $310,000 on 2012-06-12 (COOP OR CONDO)
• 245 TURF VIEW DR: $575,000 on 2012-06-12 (COOP OR CONDO)

Home Value Estimate Address: Unit (optional): City State Zip

Recent Home Sales Address: City State Zip Min Price (optional) Max Price (optional)

Nearest zip codes: 92007, 92014, 92091, 92024, 92130.

Median value of housing units with mortgages in 2010:

This zip code:	$915,234
California:	$417,800

Median value of housing units with no mortgage in 2010:

This zip code:	$883,157
California:	$367,700

Median price asked for vacant for-sale houses and condos in 2010:

This zip code:	$3,895,156
California:	$401,873

Mean price in 2010:

Detached houses: $1,054,492 (195% of state mean)
Townhouses or other attached units: $823,664 (181% of state mean)
In 2-unit structures: $638,052 (95% of state mean)
In 3-to-4-unit structures: $374,087 (81% of state mean)
In 5-or-more-unit structures: $753,198 (192% of state mean)

Estimated number of vacant for-rent houses and condos in 2010: 48
Estimated number of vacant for-sale houses and condos in 2010: 36

Surf's up for snowboard champ Shaun White, he buys a $3.85m beach home in Encinitas California

Local Athlete Shaun White makes good and purchases in his local hood.

He was the first athlete to compete and medal in both the summer and winter X Games for his snowboarding and skateboarding skills in 2003.

And now it appears that Shaun White is ready to focus on developing his surfing skills, having just dropped $3.85 million on a beach home in Encinitas, California.

The 26-year-old Olympian even spent his Thanksgiving boning up on his surf-riding technique at his new 3,500-square-foot crib, which was all captured on video for GoPro.

According to tmz the two-time Olympic gold medalist's new digs include three bedrooms, three baths, and literally has a private staircase leading to the beach and Pacific Ocean.
Shaun even managed to negotiate $400,000 off the beach-front abode's initial $4.25 million price tag.

Tubular! The two-time Olympic gold medalist's three-bedroom home literally has a private staircase leading to the beach and Pacific Ocean

 

Beautiful: Shaun's enormous deck overlooking the picturesque sea has a fire pit and more stairs leading up to the roof

Surf or snowboard: The 26-year-old Olympian spent his Thanksgiving boning up on his surf-riding technique at his new 3,500-square-foot crib

Inside the posh property, the snowboarding superstar enjoys floor-to-ceiling ocean views in practically every room.
His enormous deck overlooking the picturesque sea has a fire pit and more stairs leading up to the roof.
The flame-haired athlete, formerly known as 'the flying red tomato,' is definitely feeling the holiday spirit of giving as he will be starring in Facebook giveaway videos for eights days straight, beginning Monday.

Fancy view: Inside the posh property, the snowboarding superstar enjoys floor-to-ceiling ocean views in practically every room

Shaun sleeps here: A glimpse of one of White's three bedrooms overlooking the sea

California dreaming: There are hard wood floors throughout the pretty property

The festive campaign, known as 'White Christmas,' was directed by his brother Jesse.
Shaun will give fans a chance to win a trip for two to the Dew Tour Mountain Championships in Colorado and various autographed products from companies like Burton, Target, Shaun White Supply Co., and Oakley.
The San Diego native will be competing at Dew Tour, which takes place December 13-16 at Breckenridge ski resort.

Cleaned up: Shaun managed to negotiate $400,000 off the beach-front abode's initial $4.25 million price tag

Flying tomato: The San Diego native will soon compete at the Dew Mountain Championships, which takes place December 13-16 at Breckenridge ski resort in Colorado

December Homeowner Do's

December Homeowner Do's: Experts say it could help your tax situation to make your January mortgage payment a bit early. Plus, here's a must-do list for the month and a look at which remodeling projects you can squeeze the most value out of as 2013 draws near.
is busy. We get it. But don't get so busy that you forget to do one thing: Consider making your next mortgage payment early.Some borrowers who itemize deductions make their January payment before year's end. "This shifts the interest deduction in those months from next year to this year," explains Jack Guttentag, the Mortgage Professor. "This can be especially advantageous if the borrower expects to be in a lower tax bracket, or expects the tax rate to be lower, next year." (Bing: How low are interest rates right now?)
Here's how it works: You make mortgage payments at the end of each 30-day period you've been in your house or condo. That means that your mortgage bill dated Jan. 1 represents interest for this year — and that means you can put it toward your tax break for 2012.
A few caveats:

• First, you can only do this for January's interest, according to Bankrate.
• Second, make sure your payment will be credited as an interest payment for this year, says Eric Tyson, co-author of "Mortgages for Dummies." "I would strongly recommend that you contact the mortgage company by phone," tell them what you want to do and ask how to do it, Tyson says.
• Third, get your payment in with plenty of time for it to count toward this year. That way, the additional interest will appear on your annual statement, usually a Form 1098 or some federally approved substitute. Remember that Dec. 31 falls on a Monday, and it might even be a good idea to get that payment in before Christmas, just to be safe.
• When is that extra payment not a good idea? "It wouldn't benefit you if you expect to be in a higher tax bracket next year than you are this year," Guttentag says.

So if you have the money, consider scribbling that extra check. You'll be happier come April 15.

contact Joyce Doherty
Pacific Coastal Properties 858-344-3175 for your Real Estate needs, specializing in Solana Beach Real Estate for over 20 years.
 www.pacificcoastalproperties.net

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Because Pacific Coastal Properties loves and supports a good cause, and of course Curtis! We thought we'd share

To all my friends in LA... I'll be at Cost Plus World Market at the Grove this Saturday Dec 8 from 10-noon! Be one of the first 200 customers to bring in 5 canned goods and you'll get an autographed photo. All donations go to the LA Food Bank. Come by and share the love!

Joyce Doherty
www.pacificcoastalproperties.net

Interesting Real Estate Predictions - Solana Beach

Santa Barbara, Calif., will be one of the best U.S. housing markets in the next 5 years, per this study:
The #1 city, however, is just north of the California border.

Miami and Fort Lauderdale homes are expected to lose more value. In contrast, Medford, Ore., prices are expected to grow at an annualized rate of 11.2%.

As the housing market moves toward recovery in fits and starts, it's clear that the pace will not be the same everywhere. While would-be homebuyers in California struggle to find anything for sale and prices tick up in Phoenix, homeowners in Chicago aren't sure their property values have quit falling.

Business Insider has put together a list of the 15 best housing markets for the next five years and the 15 worst, based on data from Fiserv Case-Shiller.

Nationwide, home prices are predicted to rise 0.3% in the next year and 3.3% over the next five years. But that number obscures the spread among cities, as we learn every time we parse a new set of statistics.

The city where Business Insider sees the biggest potential for price growth is Medford, Ore., a metropolitan area of about 207,000 people 27 miles north of the California border. Unemployment there is 10.8%, and the median family income is $46,000 a year.

Prices in the Medford area have fallen 39.8% since their peak in mid-2006. In the next five years, prices there are predicted to rise at an annualized rate of 11.2%, the highest predicted growth of metro areas nationwide.

At the other end of the spectrum is Miami-Miami Beach-Kendall, a metro area of about 2.5 million people. Prices have risen in Florida in recent months, but the Business Insider analysis of the Fiserv Case-Shiller data doesn't see that continuing. Prices in the Miami area are expected to decrease at an annualized rate of 0.6% over the next five years.

The Miami area experienced one of the largest price drops in the bust, with prices currently down 50.4% from their peak in early 2007. Unemployment stands at 9.2%, and the median family income is $47,700 a year. Neighboring Fort Lauderdale is predicted to be the second-worst market, with an annualized price drop of 0.2% predicted for the next five years.

These are the markets that Business Insider and Fiserv Case-Shiller predict will have the greatest growth in housing prices from 2012 to 2017 and their annualized rate of growth:

• Medford, Ore: 11.2%..
• Panama City-Lynn Haven-Panama City Beach, Fla.: 9.5%.
• Santa Fe, N.M.: 8.9%.
• Madera-Chowchilla, Calif.: 8.8%.
• Sebastian-Vero Beach, Fla.: 8.7%
• Santa Barbara-Santa Maria-Goleta, Calif.: 8.4%.
• Ocala, Fla.: 8%.
• Napa, Calif.: 8%.
• Gulfport-Biloxi, Miss.: 8%.
• Tucson, Ariz.: 7.9%.
• Brunswick, Ga.: 7.9%.
• Yakima, Wash.: 7.8%.
• Eugene-Springfield, Ore.: 7.7%.
• Yuma, Ariz.: 7.7%.
• Glen Falls, N.Y.: 7.7%.

These are the 15 metro areas expected to see the least housing price growth between 2012 and 2017 and the annualized expected change:

• Miami-Miami Beach-Kendall, Fla.: down 0.6%.
• Fort Lauderdale-Pompano Beach-Deerfield Beach, Fla.: down 0.2%
• Naples-Marco Island, Fla.: up 0.9%.
• Phoenix-Mesa-Glendale, Ariz.: up 1.1%.
• Midland, Texas: up 1.2%
• Elmira, N.Y.: up 1.3%.
• Denver-Aurora-Broomfield, Colo.: up 1.3%.
• Atlantic City-Hammonton, N.J.: up 1.4%.
• Clarksville, Tenn.-Ky.: up 1.4%.
• Ann Arbor, Mich.: up 1.5%
• Washington-Arlington-Alexandria, D.C.-Va.-Md.: up 1.6%.
• Ithaca, N.Y.: up 1.7%.
• Nashville-Davidson-Murfreesboro-Franklin, Tenn.: up 1.7%.
• Amarillo, Texas: up 1.7%.
• Crestview-Fort Walton Beach-Destin, Fla.: up 1.8%.

Joyce Doherty Solana Beach Real Estate Brokers North County Sales

Pending home sales rise to 2007 level

Numbers are up 13.2% from this time last year as the housing market continues its slow but steady pace of recovery.

The number of contracts signed to buy new homes continued to rise in October, up 13.2% compared with the same month a year ago. The National Association of Realtors' Pending Home Sales Index reached 104.8, its highest level since March 2007. The index reflects contracts signed to buy homes, not closed sales, but is an indicator of the level of closed sales that can be expected a few months down the road.
The favorable statistics came a day after the Census Bureau and the Department of Housing and Urban Development released their October sales data for new homes, showing that the number of contracts was down 0.3% from the previous month but up 17.2% from last October's numbers.

"While this is encouraging, housing’s recovery is being significantly constrained by overly tight mortgage-lending conditions at this time, and policymaker discussions about changes to the mortgage interest deduction could cast a shadow on future housing demand," Barry Rutenberg, National Association of Home Builders chairman and a homebuilder from Gainesville, Fla., said in a news release.

Both the pending home sales and new-home sales numbers seem to indicate that housing is likely to continue its slow but steady recovery. The news that home prices apparently have reached bottom in most cities is drawing some buyers and sellers out of the woodwork.

"We’ve had very good housing-affordabilit

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It's begining to feel like the holidays in Solana Beach! Our first storm is brewing on the horizon, and it looks like the Fletcher Cove Christmas tree just went up! Tree lighting ceremony Dec 2nd at 5:00pm! Come down with the fam!

 

Contact Joyce Doherty at Pacific Coastal Properties to find your perfect holiday home in Solana Beach 858-344-3175

http://www.pacificcoastalproperties.net/

http://www.pacificcoastalproperties.net/

Posted on 2012-11-19 13:16:12

The Thanksgiving week is off to a beautiful start in Solana Beach, come and enjoy our sunny fall weather. Our Thanksgiving temps are reaching 68, and Friday a gorgeous 74!! Our vacation rental department still has some availability this week. Contact Kimber or Muriel to reserve 858-344-3175 you can see our vacation rental properties and properties for sale in Solana Beach and surrounding areas at  http://www.pacificcoastalproperties.net/  contact Joyce Doherty for Sales 858-344-3175

What Obama’s Re-Election Means for Housing

Refinancing, new mortgage regulations, and the mortgage interest deduction all won on Tuesday. But the best shot at more principal reductions might have been lost.

Throughout the 2012 presidential campaign, both candidates were short on specifics about their housing policy, to put it very kindly. They ignored housing in the debates and acted as if the housing crisis were over. Neither their actions nor their policy statements gave a clear idea of what they might do about housing. But what the candidates DIDN’T do or say helps draw out the differences between what housing policy will look like during Obama’s second term and what housing policy would have looked like with a Romney administration. Here’s what Obama’s re-election means for housing:
1. The refinancing push continues. The Obama Administration has made it easier for homeowners to refinance at today’s low mortgage rates and plans to make refinancing available to even more borrowers. Refinancing is economic stimulus since it gives homeowners with mortgages more spending money, but it doesn’t help most people on the verge of losing their homes. Although refinancing has been a priority for Obama, Romney made no mention of refinancing in his housing plan – despite strong support for refinancing from one of his economic advisors.
2. New mortgage regulations are coming. The Consumer Financial Protection Bureau, established by the Dodd-Frank Act, will set new mortgage standards by January 2013. These standards will define which mortgages are judged to be beyond a borrower’s ability to repay and would therefore trigger legal and financial implications for lenders. These standards, yet to be established, will need to strike a delicate balance between protecting consumers from high-risk loans and giving lenders the incentive to expand mortgage credit. Romney blamed Dodd-Frank for holding back mortgage lending, pledging to “repeal and replace” it. But with Obama’s re-election, Dodd-Frank–and the coming mortgage regulations–is a reality.

3. The mortgage interest deduction lives to fight another day. Romney proposed capping overall income tax itemized deductions at $25,000, which would have, in effect, reduced the mortgage interest deduction (which accounts for 35% of the value of total itemized deductions) even for many middle-income taxpayers. Obama, in contrast, is open to cutting the mortgage interest deduction only for the wealthy. Even if deeply cutting deductions finds bipartisan agreement in Congress–and it might–Obama is likely to resist gutting the mortgage interest deduction. Why? The ten states that benefit most from the mortgage-interest-deduction ALL voted for Obama on Tuesday (see table below). The average household in an Obama-voting state claims 66% more for the mortgage interest deduction than the average household in a Romney-voting state. If Obama takes a swing at the mortgage interest deduction, he’ll be hurting his supporters and putting his fellow Democrats in a tough political spot.

States with the Most Mortgage Interest Deducted Per Household
#	State	Average Amount Deducted, $*
1	Maryland	$5,920
2	California	$5,718
3	Virginia	$5,100
4	Hawaii	$5,009
5	New Jersey	$4,890
6	Connecticut	$4,739
7	Colorado	$4,625
8	Washington	$4,610
9	District Of Columbia	$4,581
10	Massachusetts	$4,490
* Average amount of mortgage interest deduction claimed per household. Includes households who do not itemize. National average = $3,343.

4. A chance for principal reductions may have been lost. In his housing plan, Romney called for more “shared appreciation” loan modifications. This means that a borrower would get a reduction in their unpaid principal balance but would have to share some of the upside with whoever took the hit for the principal reduction if the home’s value appreciates. Shared-appreciation loan modifications reduce a borrower’s incentive to strategically fall behind on their payments in order to get a principal reduction. This “moral hazard” problem was one reason why many Republicans and the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, resisted the Obama Administration’s call for more principal reductions earlier this year. Shared-appreciation loan modifications are an approach to principal reductions that Democrats, Republicans, and even a financial regulator could all learn to love. It would be a shame if this approach to keeping more people in their homes goes down in defeat.

For all of your Real Estate needs please contact
Joyce Doherty
Pacifc Coastal Properties
858-344-3175

Home prices to rise 15% in the next 3 years?

Home prices to rise 15% in the next 3 years?

 Good afternoon,

This week, I have had several requests for me to resend the 3.8% tax rate brochure (see attached) that will be going into effect on January 1, 2013. This is a great piece for a determining factor to those that may be on the fence as to whether or not to sell before December 31st 2012.

Since this new tax will affect some real estate transactions, it is important to have knowledge of how this new tax could impact you. It is a complicated tax, I have a pdf including all of this valuable information, the link gives some examples of different scenarios.

Please contact me @ 858-344-3175 or joyce@pacificcoastal.net and I'll be happy to provide link and details.

 Home Prices Near Highs in Some Cities

As housing prices nationwide start to recover from their depths, home prices in Silicon Valley are close to an all-time high.
Many Silicon Valley cities have come nearly all the way back from the real-estate bust of just a few years ago, in terms of how much buyers are willing to pay per square foot for existing single-family homes.
Driven by technology employees looking to buy and a constrained housing supply, Los Altos, Palo Alto and Burlingame have registered the strongest comebacks. During the third quarter of this year, home prices in those cities were just several percentage points away from peak levels in 2008, according to new data from research firm DataQuick

At the same time, in Sunnyvale, Mountain View and Cupertino—home to large technology companies Yahoo Inc., YHOO -0.86%Google Inc. GOOG -2.22% and Apple Inc., AAPL -3.63% respectively—the median prices per square foot during the third quarter were within 10% of their highest levels, DataQuick says.
Only three other spots along the California coast—the Los Angeles County communities of Arcadia, Manhattan Beach and Pacific Palisades—boast similar figures, says Andrew LePage, a DataQuick analyst. "It's unusual to be within 20% of the peak," let alone at just under peak levels, he says. Mr. LePage notes that the data show Silicon Valley is one of the strongest housing markets not just in California but in the nation as a whole.
Los Altos, with fewer than 30,000 residents, had one of the strongest recoveries in Silicon Valley. The median price per square foot for homes in the city was $810, or just 1.3% below the peak price in 2008, according to DataQuick. The median price of homes sold in the third quarter was $1.97 million, up 1% from $1.95 million in 2008.
There is "still so much money flowing into our marketplace," says Ed Graziani, a Los Altos-based real-estate agent.

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A number of factors are in play, says Glenn Kelman, chief executive of Redfin Corp., an online real-estate brokerage with 13 agents operating in Silicon Valley. The inventory of available homes is low, with some owners hesitant to sell amid the housing-price recovery while others are renting out homes to take advantage of the local rental boom, he says.
Meanwhile, an influx of young employees from established and newly public tech firms including Facebook Inc. FB -2.34% and LinkedIn Corp. LNKD -4.80% have increased demand, he says. Salaries for rank-and-file programmers also continue to rise.
"Whether you're selling hamburgers or houses, the prices can't go up as fast as the wealth is increasing; there are too many people who have 'I-don't-care' kinds of money," Mr. Kelman says.
While Facebook's and social-games maker Zynga Inc.'s ZNGA -3.14% share prices have fallen since their initial public offerings, some of their employees sold stock on private exchanges before the IPOs, meaning they were less affected by volatility in early public trading, he says.

While Facebook's and social-games maker Zynga Inc.'s ZNGA -3.14% share prices have fallen since their initial public offerings, some of their employees sold stock on private exchanges before the IPOs, meaning they were less affected by volatility in early public trading, he says.
The result: plenty of bidding wars. Earlier this week in Saratoga, a plain-looking ranch-style home with three bedrooms, two baths and 1,352 square feet sold for $930,000—$180,000 more than its listing price—after receiving 36 offers in just nine days on the market, says Jaleh Taghipour, the listing agent.

Trulia: Home prices rise, and rents rise more

               

The asking prices for rentals rose 5.1% nationwide in the past year, even in areas where home prices are falling. Asking prices for sales rose 2.9%.

 

The asking prices for homes are up 2.9% over last year, but rents are rising faster, even in cities where sale prices are still falling.

The latest analysis by the real-estate portal Trulia found that asking prices of homes for sale in October were 0.7% higher than in September. Year over year, 69 of the 100 metro areas tracked posted an increase in asking prices.

Rents were up 5.1% over last October, showing double-digit increases in three cities and declines in only a handful of the nation’s 100 largest metro areas.

 

"Continued widespread price increases are good for homeowners but not for home-seekers," Jed Kolko, Trulia’s chief economist, said in a news release. "In markets like Denver, San Francisco and Oakland, where prices and rents are both rising, higher prices mean higher down payments, but rising rents make it harder to save enough."

 

 

Among the 25 largest markets, the cities showing the biggest increase in rents year over year were Houston, 16.5%; Miami, 10%; Oakland, Calif., 10%; Denver, 9.4%; and Seattle, 8.8%. They were followed by Philadelphia, Minneapolis-St. Paul, Chicago, New York and San Francisco.

 

 

The cities showing the greatest decline in rents, among all 100 metro areas, were Richmond, Va., 3.2%; Las Vegas, 1.8%; and Little Rock, Ark., 1.3%.

 

These are the cities where asking prices increased the most between October 2011 and October 2012:

 

Phoenix: 24.9%

• Cape Coral-Fort Myers, Fla.: 15.7%
• San Jose, Calif.: 12.7%
• Warren-Troy-Farmington Hills, Mich.: 11.8%
• West Palm Beach, Fla.: 11.3%
• Las Vegas: 10.9%
• Denver: 10.1%
• Detroit: 9.8%
• Oakland, Calif.: 8.8%
• San Francisco: 8.7%

Most of the cities showing the greatest decrease were in the Midwest and Northeast, where foreclosures continued to drag down prices. For October, the cities showing the great decrease in prices were:

• Chicago: 5.3%
• Camden, N.J.: 4.4%
• Gary, Ind.: 3.5%
• Edison-New Brunswick, N.J.: 3.5%
• Lake County-Kenosha County, Ill.-Wis.: 3.5%
• Greenville, S.C.: 3.3%
• New Haven, Conn.: 3.3%
• Allentown, Pa.-N.J.: 3%
• Philadelphia: 2.9%
• Albuquerque, N.M.: 2.2%

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