Regulated out of Business?
real estate market
As many of you know, there is pending legislation that would regulate (read: reduce or eliminate) the compensation of mortgage originators. The Fed has not realized that many of the worst players are no longer in the business and no lenders are offering any of the worst mortgage products. Imagine telling a Realtor that he or she would be limited to a certain $ amount of commission on a sale, regardless of the price of the home? Anyone in a sales position should find this scary, whether you sell automobiles, copiers, or anything. Does any thinking person really think that these things benefit the consumer, or that they actually HARM the consumer by eliminating some of the most talented people in the industry and FORCING consumers to one or two large (government aided) banks.
Existing Home Sales Declined in August
home sales
The National Association of Realtors said existing home sales declined 2.7 percent in August compared with a 7.2 percent rise in July. Economists had been expecting a fifth straight increase, so the results surprised most analysts, who had expected sales to rise.
Here in San Diego, it seems that almost all the buying activity is in the lower price range of under $400,000. First-time buyers have purchased almost one in three homes in August. Together with investors snapping up foreclosures, they have provided most of the momentum in the market this year.
In the West, sales of homes under $100,000 were up 150 percent from a year ago. Sales of homes priced at over $250,000 were down nationally, with the biggest drop of nearly 40 percent coming among homes priced over $2 million. Orange County real estate
Real Estate Saving Money — WORK WITH a CRS
certified residential specialist
Buying a home is one of the biggest and most emotional decisions you will ever make. So it’s important to work with someone who can provide sound advice and a steady, guiding hand when you need it. That’s why a CRS agent is the best person for the job.
A Certified Residential Specialist (CRS) is among the top 4 percent of all agents in the country. CRS agents have achieved a high volume of transactions and advanced training in areas such as business planning, real estate investing, marketing and technology. They must also maintain membership in the NATIONAL ASSOCIATION OF REALTORS® and abide by its Code of Ethics. Why work with anyone else when you can work with a CRS? Bob Schwartz, CRS, GRI – San Diego real estate broker
Foreclosures – Strategic Defaults Double
Home foreclosures
A new study from Experian and Oliver Wyman, looks at the prevalence of strategic mortgage defaults, ‘walking away’ from a home mortgage that is more than the current sales value of the home. According to the study, there were 588,000 nationwide strategic defaults in 2008, more than double the total in 2007.
The best way to ensure a minimum of strategic defaults is to require a higher down payment on a loan. On a $100K house, a lender could require $20K to $30K down. This means that the home would have to first fall by 20% to 30% (and thereby “eat up” the owner’s equity) before a strategic default was logical. Here in San Diego, in this Great Recession, even the people who did put 20% down in 2003, 2004, and 2005 are now under water. Also, in the real-world, the down-side of this idea is that it would kill the housing market! Read more 
FHA Home Loans in Worst Shape in 75 Year History
FHA home loans
This latest FHA loan news should come as nothing new for all our long time readers. On 12-16-08 I published a post entitled FHA Home Loans – The Next Bailout? and than on 7-2-09, I published: FHA Home Loans Headed for Trouble? Just yesterday, the FHA said its financial reserves had sunk below mandatory levels for the first time in its 75-year history. While officials insist the agency won’t require a taxpayer rescue, falling home prices, rising unemployment and shady lenders continue to drive up default rates.
3 Mistakes Many Home Owners Make
San Diego home sellers
I’ve been in residential real estate for over 30 years. During this time I’ve encountered many sellers who made huge mistakes in preparing to market, and marketing, their home. Some mistakes have cost thousands of dollars.
To say our current real estate market is not challenging would be an understatement. In almost every market I’ve seen sellers try to take on the duties and responsibilities of a real estate broker in the mistaken belief that they can save a commission. The number one mistake sellers make is trying to sell their property on their own.