30 Year fixed up to    $417,000   4.25% – No Points

30 Year fixed up to    $697,000   4.50% – No Points

30 Year fixed FHA to $697,000   4.375% – Little as 3.5% down

15 Year Fixed up to   $417,000   3.75% – No Points

30 Year  Jumbo to     $2,000,000  5.25% – No Points

• PS—If you are with Navy Federal Credit Union they have some AMAZING programs.  Call us for more info and a personal referral.

Just for reference a $100,000 at 4.5% on a 30 year loan is a payment of $506 a month.  This is making homes very affordable relative to rents.  Needless to say, with these rates, the recent bump in inventory and better pricing, as a buyer I am purchasing as many cash flow properties as possible in the next 6-9 months.  As a seller we are pricing our rehabs COMPETITIVELY and they are selling.   It is all about price and rates. 

 The market has slowed down from the first half of the year.  Buyers have more options, less competition, better rates and overall more opportunity.  That is not to say properties are not selling.  Our listings are selling….why?  Because they are PRICED RIGHT!  In any market there are opportunities for buyers and sellers….if THE PRICE IS RIGHT.   I don’t predict another  free fall for prices but I do think the market will be soft through the first part of 2011 creating opportunities for those with patience, a plan and good advice.  We can help you with the plan, advice and maybe even patience.

The first step is to start watching and tracking inventory and sales in your area of interest.  A great tool to get started is Listing Book which is current, accurate and relevant data not from 3^rd party sites.

Get More Info & Set Up Your Own Listing Book Account Here!

If you are thinking of buying or selling property in San Diego in the near to mid-term give us a call or email to see how we can help.

Remember, if you see any properties you are interested in seeing just let us know and we can make arrangements!

As always, thanks again and enjoy what is left of your summer!

Market Trends Report

Featured Properties at ProFund Real Estate

ProFund Real Estate on Facebook!

If you have been watching the San Diego real estate market the last six months you might be asking yourself these questions.  Here are some line items facts about the market.

 Inventory has plummeted.  9,729 active homes 7,137 pending sales!!

 New listings are selling quickly, with multiple offers…sometimes over list price.

 Median home prices and pending sales have INCREASED 3 months in a row.  
 There is not nearly the selection we had just six months ago.

 Foreclosures are going strong at 1,799 foreclosures in June.

 San Diego Unemployment at 9.4% in May from 5.4% a year earlier.

 Properties are selling over 98% of list price. 

Detailed Market Report : Click   PDF Market Report   Online Market Report

This is a lot of mixed information that can be very confusing if you are trying to make a decision.  Here is our street level interpretation of what we see happening.

Median prices are increasing, but actual prices are not.  The really low end was so dominant that median prices dropped dramatically.  However, now the middle tier market has come down enough for buyers to get off of the fence.  There are more people buying in the $400K-$900K to offset the lower end. This will cause median prices to increase.  We are seeing relatively steady prices, not freefalling and not appreciating.  Although, we are in a recession and unemployment is high, prices and interest rates have come down so much that there is a VERY strong buyer pool of very well qualified buyers that are making offers.   Foreclosures are slow to come on the market but banks are now pricing them very well and they are being sold as quickly as they are coming to market.  With low, well priced properties and a strong buyer pool, well priced homes are selling at list price.    The bottom line is that the extreme fear of doom and gloom has subsided and buyers are comfortable enough with prices and interest rates that they are willing to buy.  There are great opportunities as well as a lot of pitfalls in this market.  Make sure you have a plan and work with someone that knows the market and how to use it to your advantage.  (Hint…ProFund Real Estate)

On another note, financing has become a little more restrictive.  Below you will see a quick breakdown of general guidelines.

Single Family House: 90% Financing up to $417K, 85% from $417K to $697K

Condos: 80% Financing regardless of loan amount.

FHA:  96.% up to $697K.  Condo must be on FHA approved list.

Jumbo Financing up to $3 million, 75% Financing with 720+ Fico

Click Here for Single Family Homes Listing in the Last 7 Days!! Central & Coastal San Diego

Click Here To View 202 Featured Homes

Click Here To See 99 New Homes Listed In Last 7 Days!!

ProFund Real Estate….Search Homes Online, Mobile Phone GPS Search, Facebook

As always, don’t hesitate to call or email to discuss what you are looking for!!

4 Bedroom 2.5 Bathroom, 2,733 Square Feet, Large lot, spa…click link abov for pictures and details.  Call (858) 405-4004 for more information and showings.

The phone has been ringing and the emails have been coming in about the bailout, the stimulus package and new market reports. So I thought I would send a quick email with my quick thoughts and a few good properties to consider. (See properties and Market Trends below.)

Foreclosure Bailout: Personally, I think this will delay the inevitable and slow down foreclosures that should and will occur in most cases. The administrations foreclosure plan does not cover the vast majority of mortgages that were used in California during the boom years. Owners that are in trouble are so far underwater that even with reduced payments it doesn’t make sense for them to hold onto their house and they know it. It’s just now they can live for free for a year. Lastly, our experience with the lenders is that they are so backed up, understaffed, underprepared and in denial that they are not making sound business decisions. There is a substantial disconnect on this end of the business. Keep in mind, this is for owners attempting to do a short sale or loan modification. It does create great opportunity in the bank owned and foreclosure market for buyers. It just will delay the new inventory coming to the market about 3-6 months from when it should have come on.

Another point I wanted to address is San Diego, for whatever reason, is always about 18-24 months ahead of the rest of the country. The reality is that we have taken as substantial hit on values the last three years while this is new for other markets . We are seeing sales surge in the low end ($100K-$400K) and hold stable in the midrange. I do think that the higher end, $1,200,000 and over inventory will be the market that really struggles this year. I recently did some research for the entry level market in Oceanside, Escondido, Vista and San Marcos and was shocked. Properties are selling for over 100% of list price, in under 30 days and FAST. The active listing to pending ration was close to 1 to 1. This is very surprising for buyers thinking that nothing is selling and they have complete control. These are homes that have dropped up to 60% in value, the cost to own is less than rent and investors can cashflow these properties. Do your research on your market and you might be surprised to see what you find. The difference between high end coastal and the entry level to mid level is very different. Email me if you would like to see the numbers that I put together.

Here are the current MLS statistics as of today.

Active Listings: 15,003

Pending Sales: 6,089

We have had a stable inventory, if not declining, and stable pending sales for some time. The misleading part of this is that of the 15,000 active listings, I would say about 5,000 of them are short sales that have multiple offers but the lenders are struggling to respond effectively and the agents wont put them in pending status. Just ask all our buyers that are waiting and waiting and waiting.

We have a great new interactive Market Trends Report (Click). Check it out!!

Click here for information and paperwork to reduce your property taxes.

We have also made some changes and added new content to our website with more coming soon! Click It!! ProFund Real Estate.

Check out the properties below and let us know what you think.   Click for Featured Properties

FYI. The house on Pecos is a private investor and it is not on the MLS…(Less Competition) call or email for details.

Thanks for reading!!

Payment: $1,570.00 5% 30 Year Fixed
Mtg. Insurance: $ 170.00
Taxes/Insurance: $ 400.00
Total: $2,140.00
Tax Savings: $ 430.00 25% Tax Bracket
Principal Reduction: $ 351.00
Net Cost To Own: $1,359……..This is much less than it would cost to RENT. You also could qualify for the $8,000 credit right of the top of your taxes in 2009!! Plus the long term benefit of appreciation. YES, at some point prices will rise again!! Believe it or not we are not slipping into the oblivion or the Pacific Ocean.

On investment properties we are regularly seeing at 10% Cash on Cash Return, plus principal reduction and appreciation.

Good properties are selling very quickly with multiple offers and it is critical to have financing secured and work with professionals that know how to find deals, present and negotiate offers in THIS market.

I have included a current Market Trends Report below and some great properties we have come across.

Market Trends Report

Property Searches – Featured Properties

If you are an investor and would like to receive emails of these properties immediately please email me directly to be added to our pre-screened investor list.  Your best chance to get the deal is to be first in the door.  We prioritize our investors based on criteria, willingness to write quite strong offers and able to close.

ryan@profundrealestate.com

www.SanDiegoBankOwned.Com

Right now, I can say without a shadow of a doubt it is a BUYERS market like never before.  Here are some numbers and trends to consider and my assessment is below.

19,575 Foreclosures in 2008

Average Detached prices fell 34% in 2008 but were up 1.82% in December from November

Median Detached prices fell 30% in 2008 but were up 2.77% in December from November

Average Attached prices fell 31% in 2008 but were up 2.44% in December from November

Median Detached prices fell 36% in 2008 but were up 2.56% in December from November

Median Price for Detached was $349,450 in December….. $2,265/Mo. Total 10% down!!

Median Price for Attached was $200,000 in December……$1,516/Mo. Total With 10%!!

You also get the tax break and principal reduction!!

Transactions for Detached were up 9.1% in 2008 from 2007!!

Transactions for Attached were up 18% in 2008 from 2007!!

Total inventory has declined from over 23,000 units to 15,328 units today.  There are 5,512 pending sales today.

What does this mean?  What will 2009 bring?  My predictions……

1.        Foreclosure will pick up steam again as new laws slowed them down the last 3 months.  They will start to slow down toward the end of the year.

2.       Prices in 2009 will show a decline of 10% -12% for single family and condos combined. Primarily due to current softness in the higher end market.

3.       Higher end homes in less desirable areas will see the most decline

4.       Lower end homes under $500,000 are very, very close to the bottom if not there already.

5.       If banks are able to increase their effectiveness of loan modifications and work out plans we will see a drop in new inventory.  This is a 50/50 probability….I have my doubts.

6.       There is a TON of money and buyers slowly and cautiously coming into the market now.

7.       Prime properties in good locations that are priced well are selling fast and establishing a bottom in the market.

My advice at this point is this.  If you a thinking of buying now, put a plan together, secure financing and establish very tight search criteria for your wants and needs and get ready to make a move when the opportunity arises.  There are enough deals out there that will put you close enough to the bottom while allowing you to choose the perfect property.   Be patient and ready to negotiate the best price and terms.  Although, I am bullish on buying properties in general  I suggest you work with someone (US) who knows how to find, assess and negotiate the right value.  It is more critical than ever to work with a professional that knows this market.  We outsold the average California agent last year 9 to 1. 

If you think 2009 is the year for you.  Let us know and let’s get started! 

Ryan Mathys & Tracie Kersten

http://www.SanDiegoBankOwned.com

http://www.CashOfferSanDiego.Com

It is an amazing buyers market right now with great deals.  We are very successful at finding, negotiating and closing on homes in this environment.  We know how to value properties, avoid pitfalls and negotiate with other agents, banks and short sales to get our clients’ offers accepted. 

The Internet is a great way to do general searches for properties, however, it is not always comprehensive or accurate.  We have access to various sources for much more specific searches (not just the MLS) that allows our buyers complete access. 
Click here for 40 page Home Buyer Handbook (PDF).

Are you looking for something specific?  Please respond below and we will send you a custom realtime search link and property tracking tool.

If you would like to schedule a showing of any properties or have any questions please email or call us at:

ryan@profundrealestate.com

(619) 694-4631

Search Questions:

1.       What area are you looking for?    Neighborhoods, school districts, zip codes, developments, etc.

2.       What type of property?  Single family, condo, multi-unit, single story, two story, etc.

3.       How many bedrooms, bathrooms, bonus rooms, square footage, lot size or any other requirements?

4.       What is your maximum price range and ideal price range?

5.       Are you specifically looking for traditional seller, foreclosure/short sale properties or do you want to see all properties?

6.       Is this a primary residence, investment property or second home?

7.       What type of financing with you use?   Cash, conventional, FHA, VA, CalHFA

8.       What amenities do you want?  Pool, garage, HOA fees, Mello Roos

9.       Any other special requirements, requests or preferences

But ever the optimist, this is an amazing time to buy.  If you qualify for a safe mortgage and your personal job is secure, you are in the driver’s seat. It seems that others are realizing this as well.  Here are some recent numbers to consider.

• Home sales up 66.7% in Southern California over last year.
• San Diego October sales were the highest in over 3 years with 3,598 closed transactions.
• Median price has dropped to $323,500….the lowest number in 6 years.
• Median price for single family homes was $365,000 and condos was $204,000
• Foreclosures are over 50% of all sales, an all time high
• Affordability for San Diego is the best in 9 years!!
• Adjusted for inflation San Diego real estate is now at or below 2001 prices.
• Interest rates are hitting all time lows….NOW!

This is the “perfect storm” for a buyer’s market.  Whether you are a first time buyer, investor or move up buyer, NOW is the time to BE A BUYER.

If you are in a position to refinance, consider this.  Rates have plummeted in the last few weeks and 30 year fixed loans are between 5.125% and 6%!  This is lower than the refinance boom of 2003.  Granted, the loans are harder to qualify for but if you have equity and verifiable income now might be a great time to refinance to a VERY LOW FIXED RATE.   These rates are incredible and very volatile so call today to see if you should make a move.

One other side note is that Property Taxes are due December 10^th. You should have received a bill or you can check your account or pay online here :  Property Taxes

Call us today to discuss a plan, strategy and timeframe for you to take advantage of this great opportunity.  Even if you are thinking about 2009, we recommend that you put a plan together in advance.

Click here for Newsletter. 

MLS Property Searches

then look no further. Our new foreclosure point system allows prospective San Diego foreclosure home buyers and investors like yourselves to do a San Diego foreclosure search for free at any time. This is not the watered down foreclosure searches you will see on lesser sites. This is current up to date information, that are happening on foreclosed San Diego properties right now.

Foreclosures are a great bargain right now for savvy minded home buyers and investors. If you are looking to get the most up to date foreclosure buying information I suggest you attend one of our bi monthly ” San Diego foreclosure classes.” These seminars are always free and always refrain from in your face selling or foolish over the top techniques. Trust me, when the right San Diego Foreclosure

comes around you will know it.

The banks that own these properties are looking to cut their losses and get rid of them. Think of how much money they are out for 1 month every month that foreclosed property sits on the market? Now multiple by that by several thousand. You can see that there there is room for negotiations that were not previously possible. When negotiating you don’t want to come off us someone who cannot close quickly nor have the means to buy the property or understand the process of buying a foreclosed home properly. This is where top notch representation comes into play. I have extensive experience dealing with these banks and know exactly what they want to hear in order to make a deal work, this gives you the buyer a huge advantage.

I encourage you to contact us any time. Whether you are a savvy full time real estate investor or a first time home buyer who does not no where to begin, we are more than happy to answer all your questions. Your concerns and objectives will always be kept in mind. Don’t forget to stop by foreclosure point to look for potential homes and investments. Thanks for stopping by. San Diego foreclosure listings