San Diego real estate blog - Peter Toner

When discussing the current status of the Housing Market you often hear “national” averages, although it is good data to review it doesn’t entirely display the full picture. Housing Markets are regional. One region of the country could be suffering greatly while another has yet to see any distress. The best way to find out what the status is of your local region is by examining a few key indicators of which way the Housing Market may be headed. Each of which are somewhat inter-related as well. The following key indicators were discussed in an article in Money Magazine titled "Housing rebound: When to Spot One."

We’d like to share with you the indicators below.

Jobs: If there are more jobs available in your area, the demand for homes improves.  Plain and simple.

Housing Supply: If there is a large volume of houses available the market will not strengthen until the supply lessens. A stable market tends to have six month’s worth of inventory and homes stay on the market for approximately 90 days.

Year to Year Sales Comparison: Compare the current month with the previous year’s same month’s totals.  If this is data you are interested in learning more about, we’d be happy to pull the numbers for you and discuss the statistics.

Prices of Homes Stay Steady: The general consensus is that after 3 months of smaller price decreases the market will tend to shift for the better.

Renting vs. Owning: When renting is cheaper than owning in your neighborhood, you will not see as many sales especially if the market is distressed.

Following these indicators is not necessarily a magic crystal ball predictor, but they will allow you to observe the market in your area to get a better idea for which way the market may turn. Should you have any questions on this information, or would like further assistance with getting the statistical data for your community, please let us know we are happy to discuss the details with you!

In just a few days the Nation’s 4^th largest bank will put an end to their wholesale lending division. Traditionally the wholesale division of a bank offers loans to mortgage brokers at a lower cost than their retail branches offer to the general public. The broker then sells the loan to their client, with a fee added.  In the end the borrower pays “approximately” the same for the loan from the broker as they would at the retail branch. Mortgage brokers generally had more ability to use creative financing and were not always as restrictive as bank retail branches. 

Starting July 25^th Wachovia will be “re-positioning” their business focus towards their branch franchises, which will allow Wachovia to tend to the needs of their customers who already have a banking relationship with the company.

This latest company “re-positioning” plan comes as no surprise. The wholesale lending industry is what many are pointing fingers to as part of the “cause” of our mortgage meltdown.

Wachovia has not released the number of jobs that may be on the line. Next Tuesday they will be disclosing their second-quarter earnings which many expect to include more details on what their plans are for the future of the company.

Perhaps transitions like this one will create a more focused and informative customer service lending experience in the future, one we would fully endorse.

New lending rules were issued this week by the Federal Reserve, most of which will not be taking effect until October 1^st, 2009 and some as late as April 1^st, 2010.

Not only will banks have to abide the new rules but all lenders will be required to do so as well. Consumers should be grateful for the new lending standards being put into place and hoping to see a reduction in risky lending practices!

Brief Highlight of New Rules in Lending:

Coercing of appraisers to inflate the value of a home is now forbidden.

Mortgage payments must be credited to a borrower’s account immediately.

Loan applicants must document their income, and the income documentation must be submitted for loan approval.

Impound accounts are no longer an option but are required.

Caps on prepayment penalties, as well as limit them to more than 2 years.

Truthful advertising is a must with full disclosure of rates, payments, and details of the loan being advertised.

Lenders must take into account whether or not a borrower will be able to repay the loan by means other than of the home’s value.

The Feds plan of attack to regulate lending practices may have come a bit late, but as they say, better late than never! What say you? ….

Are you a Real Estate agent living in North County San Diego?

Do you wish you had more business close to home… if only you had more potential clients to contact!

With everyone pondering over the “slow market” our agents are running all over the county showing homes and working with buyers who are interested in seeing what is now available in our changing market. With prices looking much more affordable, we are seeing serious offers written and accepted! Our award winning team needs a full time experienced buyer’s agent who has a positive attitude about today’s market and willing to go the extra mile.

We are looking for a North County resident agent to fill the missing piece to our team! We need you to take on these clients and focus on producing success in your region.

No prospecting required, but you will need good organizational skills to follow up on leads assigned exclusively to you. You will need to be internet savvy with your own laptop computer and a smart phone to receive emails and text messages.

Position available immediately, 1-3 days a week you will be on “floor” duty in our office and receive all non assigned email and phone call leads for that day. Leads that come in during the weekend are assigned in rotation to agents on the team.

Please fax your resume/experience to 800-878-9263 or respond by email

Interesting read on Inman News website regarding the increase of FHA loans on the West Coast. It comes as no surprise that this increase began during the month of March 2008 when HUD released their new loan limit programs. The statistics were obtained from California, Arizona, Nevada and Hawaii and show an increase of 62.5%! If you’d like to read the full article and view the detailed statistics please click on the following link to Inman News.

To all of our clients, family and friends we would like to wish you a very happy and safe Fourth of July weekend!

~The Peter Toner Team

This Saturday, July 5^th Surfrider will be meeting to do their annual clean up of San Diego’s beaches  after the July 4^th holiday. This year they are teaming up with Sun Diego Boardshops coordinating the cleanup of 6 beach areas in San Diego. The six beach locations are Ocean Beach Pier, Belmont Park in Mission Beach, PB Drive in Pacific Beach, 15th St/Powerhouse Park in Del Mar, Ponto Beach in South Carlsbad, and the Oceanside Pier. The event begins at 8am on Saturday, July 5^th and ends at 11am at all locations. Last year over 1,000 volunteers showed up to participate and collected a total of 8,000 lbs. of trash!! Let’s not let our beaches remain a mess after the holiday fun, join Surfrider and Sun Diego Boardshops to keep our beaches clean! For more details on the event including registration information, please visit the Surfrider website.

1. A Mello-Roos Community Facilities District (CFD) is formed. Mello-Roos is a method of financing government entities (cities, counties, school districts and other special districts) to fund the cost of public improvements. Before Government entities can form a CFD, they must either obtain permission from area landowners or hold an election of registered voters within the CFD.
2. The municipality sells bonds on behalf of the CFD. These bonds are sold to private investors who purchase them for tax-free interest income. The money raised through the bond sales becomes the debt obligation of the CFD.
3. Bond proceeds are used to pay for public improvements within the CFD. The types of improvements, which can be funded by a CFD, are much broader than those types of improvements, which can be funded by traditional assessment districts. For example, schools, police stations, fire stations and libraries can be constructed with CFD bond proceeds, as well as roadways, water lines, and other traditional types of public improvements. CFD’s can also be formed for purposes of public facility maintenance.
4. Money is repaid to bondholders through the Mello-Roos special tax. The service for the bonds is repaid by the levy of special tax on property within the CFD. The amount of the special tax is determined by each CFD’s Special Tax Formula, and may vary between property types. The special tax revenue is used to pay back the investment, repay principal and interest to bondholders. Taxation and repayment continues each year for the life of the bond issue, usually 20 to 40 years.

Blog entry courtesy of our California Title Representative from the "Ranch-to-Sea Team" Marc Angstead

Would you believe it? In some areas of the nation, it is the city that is the one stepping up to the plate to assist areas hardest hit by the mortgage meltdown. Seems a bit far fetched, but according to many recent reports it is quite true.

While the federal government is dragging their feet trying to agree on what step to take next, across the nation metropolitan areas such as Boston, Philadelphia, Los Angeles, Baltimore and Trenton are taking matters into their own hands.

Communities that were once thriving are now turning into vacant rows of houses, and in some areas criminal activity is further depreciating the neighborhood value. City officials are holding the same lenders who wrote     “liar loans” and other fraudulent mortgages accountable for their bad business and suing the companies in hopes to recoup the monetary losses of their communities.

What’s a City to do in circumstances like this? Assist those who are entering default, those who have lost their home to foreclosure, clean up vacant neighborhoods, assign more neighborhood patrols for areas hit with crime, and even sue the lenders that have caused the economic losses of the community? Will the cities actions be able to help? Better yet, will more cities step up to assist their communities?

For San Diego County the changes in the market have made home prices once again obtainable to many, rather than just a few. There are areas of San Diego where home prices have dropped by 50% compared to sales prices of 2005 and 2006. The areas hardest hit are the inland suburban areas from North to South of San Diego County. Those communities located along the coast are struggling to hold onto their value, but so far have continued to remain steadfast.

Is it a right time to buy, can you find a deal, has the market hit bottom? With financial analyst predicting mortgage rates may be on the rise is it safe to sit and wait for "the bottom," when now more than ever may be a more "affordable" time for San Diegans to buy…

Summer in San Diego is officially here! It’s that time of year again when the kids are out of school, vacations are in full swing and its time to relax and enjoy the fabulous fun that San Diego County has to offer!

With that being said the first of this summer’s holidays is just around the corner. Yes it is San Diego’s Favorite holiday Fourth of July and it will be here before we know it! Have you got plans in place to celebrate? If not we’ve got a few ideas that may help you get the summer started off right!

Fourth of July in San Diego 2008

• San Diego County Fair ~ Gates open at 10 a.m. and Fireworks will end the day at 9 p.m. There’s plenty of family fun to be had at the County Fair!
• 6th Annual Big Bay Fireworks Show ~ Starts at 9 p.m. best places to view the 4 simultaneous firework shows are Seaport Village, Coronado Landing, Harbor Island, North Embarcadero and Shelter Island.
• Coronado Celebration Parade ~ Starts bright and early on Orange Ave at 7 a.m. with a concert in the park to end the day, band begins at 4:30 p.m.
• Julian’s Old Fashioned 4th ~ starts at 10 a.m. and rumored to bring 10,000 visitors to the small town.
• LEGOLAND Red, White and Boom ~ the fun begins at 9 p.m.
• Rancho Bernardo Spirit of the Fourth ~ Pancake Breakfast at 8 a.m. followed by fun for all with crafts, vendors, food and live entertainment.

For more Fun 4th of July ideas in San Diego view the full list on “San Diego’s Un-Official Website” www.SanDiego.com! Photo of fireworks over the San Diego Harbor courtesy of PD Photo!

Looking to purchase a Foreclosure property? The Bush Administration’s latest announcement just made it easier. For the next year, FHA will be allowed to insure mortgages to purchase foreclosure properties that have been in the seller’s possession for less than 90 days.

Previously, FHA was not able to insure such homes with the intention of preventing “flipping” of homes in distressed neighborhoods. This same rule created a bit of a catch twenty two. The homes taken back by the lender would have to sit and sit creating a larger number of foreclosed homes that could not immediately be put back on the market for sale. The more vacant homes you have, the more the neighborhood value declines and the less likely buyers are going to come into the neighborhood in fear of living in a ghost town.

The Bush Administration’s decision to eliminate the 90 day rule is an attempt to help assist areas that have been hardest hit with foreclosed properties. As the number of foreclosures rise across the nation, it is a bit premature to say whether such a change will be able to make any kind of a positive effect on the market.

If you were watching the enthralling ending to this years US Open tournament and wished you were living here in one of the worlds best climates, let us know! Please post your comments and share your thoughts …

In San Diego we have all come to the reality that a large majority of our market is “distressed” – in the status of Short Sale, Notice of Default or Foreclosure. It is clear from the sales stats that the main areas being affected by the mortgage crisis are those in the outer communities of San Diego County. In an article by San Diego Reader statistics were quoted for areas that are at the highest level of distress. In National City 70 percent of homes listed for sale are in distress, Lemon Grove is also at 70 percent, Spring Valley is hovering at 40 percent and Chula Vista being the hardest hit is at 72.6 percent. North County is also being affected with Oceanside and Escondido being in or above the 70 percent range for distressed homes.

So what does this mean if you are a buyer? Well for the past four months an agent on our team has been searching diligently with their client trying to help them find that “perfect” home. Eureka!! They finally find the home, only to learn a “Notice of Default” had just been recorded on the property. The client’s immediate reaction is great that means I’ll get a “Foreclosure deal!” Reality is that isn’t quite the case, yet.

The recording of a Notice of Default occurs 3 months prior to a formal filing of Foreclosure. What does this mean to our buyer? They either have to try to go through the trials and tribulations of a Short Sale (which in itself can take months to get a lender approval on an offer) or wait out the 3 months after the NOD is filed and hope that in the meantime the lender doesn’t accept an offer. The buyer would then need to wait for the Foreclosure to be filed and the home is released in a Trustee’s Sale…but is it worth the risk and the wait….

It depends on the buyer’s circumstance. Remember once it goes to Foreclosure, the home is sold at a court house auction. The opening bid will be determined by the foreclosing lender which is usually set to the total amount that is owed on the home (ie original loan amount and arrears). Should the starting bid not be met, the status of the home will then change to REO (Real Estate Owned). The bank will then list the home for sale (not always immediately) and hopefully will do so according to the market value of the home. That may be the ideal time for a buyer to step into the sale…. after all the legalities have been completed and the home is at REO status. Bear in mind that you may be also competing with other bargain seekers at this point.

Our advice? It makes the most sense for a buyer to hunt for their “perfect” home with the help of his or her Realtor. A home that has been priced properly according to the market and matches the criteria of a home that the buyer would like it to have. Should you happen to find that home is in distress, make sure that you know all the in’s and out’s involved before jumping into “rough waters.”

The Peter Toner Team is looking for the missing piece to our team… and we’re hoping its YOU!

Are you a highly motivated, internet savvy agent, equipped with your own laptop computer and smart phone? Have you wanted to make a change for the better but don’t know where to start? Do you have a positive attitude about today’s market and are willing to go that extra mile? If this is you then you then you should contact us!

We are The Peter Toner Team an award winning group of individuals all working towards the same goal, continued sales success and client satisfaction. Although many agents are quick to blame the “market” on their slow sales, we are receiving a large volume of leads and need to add to our team in order to keep up. Our high ranking website produces buyers wanting to see homes in all parts of San Diego County, so be ready to hustle! If you live in either North County or South Bay you’d have an advantage over the rest…

No prospecting required, but you do need good organizational skills to follow up on leads assigned exclusively to you.

Are you available to join our team immediately? Would you like to know more about us? Check out our website www.SanDiego-MLS.com or just google us and you’ll see just how high we rank!

Call us at 858 551 3331 or email us at peter@teamtoner.com send us your experience and let’s see if we are a good fit!

A recent study completed by the economic data research company Global Insight Inc. found some very interesting statistics in regards to San Diego Home Values as well as a few other large metropolitan areas. The chart is below, and as you can see the results show that San Diego home values were found to be 9% undervalued. Other areas that were found to be “undervalued” were Boston, Las Vegas, Denver and Houston. (The undervalued homes are represented by a negative sign in front of the percentage.)The statistics were based off of income levels, current interest rates, population density, as well as market premiums and/or discounts.

First Quarter Home Values Chart by Global Insight Inc.

Median Over- Metro Price Valued    Area   

  (thousands)         (%)

N.Y.               $468.8               +0.5

L.A.                 $432.2             +15.2

D.C.                 $403.8             +24.6

S. Diego    $376.6          -9.0

Boston           $332.4             -13.1

Miami             $271.7            +27.0

Phila.              $235.2             +4.1

L. Vegas         $232.6             -3.1

Phoenix        $224.9           +20.0

Denver         $217.9              -6.7

Houston       $120.0           -33.1

SOURCE: Global Insight Inc.