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Posts tagged ‘San Diego real estate bubble’

20
Jan

San Diego Negative Home Equity

San Diego Home EquitySan Diego real estate mortgage bust. Much has been made of stated income, nina, ninja, etc. loans. The fact remains that the debt to income levels that were accepted during the boom time for people who could document their income exceeded 55%. Sub prime borrowers who could document their income could have DTI levels from 50-55%.

What is not talked about is that Fannie and Freddie loans could get approved with DTI levels as high as 63%. Typically a borrower would need some other strong factor such as high FICO or 6-8 months in reserve. Nevertheless, people are not walking from their homes just because they are upside down. Like most things in life there is rarely one answer, rather a multitude of factors.

Get ready for the next wave of foreclosures, just months away. This new wave of foreclosures will be prime mortgages on upper end homes.                             San Diego real estate agent

16
Jan

San Diego Homeowners with Underwater Loans

San Diego HomeownersPeople might have got into these loans without thinking too hard but I guarantee you that they won't leave as foolishly. You don't need to be Robert Shiller to understand that your housing equity is not coming back any time soon and that rents are becoming ever more affordable.

Besides… who needs a credit score in the next 4 years anyway? Many people approaching 800 on their FICO are still being denied new credit card offers and have no desire to purchase any real estate until the dust settles.

Many strongly believe that underwater homeowners should walk away en masse unless their true desire is to stay put for the next 15 to 20 years. Rip the band-aid off!!!               San Diego Realtor

12
Jan

San Diego real estate – 2009 the Option ARM resets

Many local mortgage lenders feel that San Diego & Southern California were the prime locations for the adjustable Option ARM loans. Now, just when many believed the mortgage crisis was winding down, San Diego real estate will be facing another major obsticle.

Our first post on this problem was San Diego Real Estate … The Coming Next Wave of Foreclosures, published on 7-17-08. It took a little while, but now the major media outlets have picked up on this problem.                                                                San Diego Realtors

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6
Jan

San Diego Real Estate – It Could Get Really Ugly

 

San Diego real estate 2009Did you see Fortune magazine's article (12/22/08) regarding their picks for the worst 10 real estate markets in the nation for 2009? Eight of the 10 worst markets they've called are here in California.  Fortune's article projected valuation losses in the eight California cities of 21-25% for 2009 and additional 2-5% losses for 2010. Really, not what you want to hear anytime, but especially at new years.

 

 

The eight worst California markets named by Fortune, in order are:

 

 

 

 

 

Los Angeles   -   2009 projected change: -24.9%

 

 

Stockton   -   2009 projected change: -24.7%

 

 

 

 

 

Riverside   –   2009 projected change: -23.3%

 

 

 

 

 

Sacramento   –   2009 projected change: -22.2%

 

 

 

 

 

Santa Ana/Anaheim   –   2009 projected change: -22.0%

 

 

 

 

 

Fresno   –   2009 projected change: -21.6%

 

 

 

 

 

San Diego   –   2009 projected change: -21.1%

 

 

 

 

 

Bakersfield   –   2009 projected change: -20.9%

 

 

 

 

 

One should keep in mind that California is ground zero for much of the country's ALT-A and Option-ARM mortgages, which are ready to start re-setting this year, the possibility for things to get really ugly is high.                                                    San Diego MLS listings

 

Related other blogger's posts:

5
Jan

San Diego Real Estate Appreciation Up 100%+

 

San Diego home appreciation of 2000 to 2005 (100%+) made all but a few cautious investors into something very much like a Madoff investors: If you thought about it, you realized something had to be wrong (how do San Diego home prices double, when San Diego household income is essentially static?) . . . but doubting didn't pay; the small band of doubters were the ones gloomily renting condos while all the fun was being had by more aggressive sorts.

 

 

One underestimated factor is the "fear of losing out"– the danger that someone else is getting rich flipping condos, while you do the boring responsible thing, and build up equity. Even  prudent investors were influenced by all the voices saying "buy and leverage".

 

 

What the TV talking heads said about the real estate market for 2007:

 

 

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Prudence is a virtue which needs to be nurtured, particularly in the face of speculative excess.

 

 

Bob Schwartz, San Diego real estate broker

 

 

Other bloggers related posts:

 

18
Dec

San Diego Home Values Drop Over 30%

San Diego home valuesMDA DataQuick just reported median price of all homes sold fell nearly 6 percent from October to November, dipping to a 6-1/2 year low to $305,000. Since November 2007, the median price of all homes sold was off more than 30 percent. Plus, the median price was off more than 41 percent from the market peak of $517,000 in November 2005.
 
John Walsh, MDA DataQuick president, said: “Many first-time homebuyers are, understandably, cheering as foreclosures dominate sales, tugging down prices and raising affordability. For home sellers and the industry, though, one concern over foreclosures representing half of all sales is that those transactions simply repay lenders. They don’t trigger a move-up purchase.”
 
San Diego home sales for November were up 11.4%, but, foreclosures accounted for about half of all resales during the past three months. In November, 54.6 percent of all the homes that resold had been foreclosed on at some point in the prior 12 months. That's up from 50.9 percent in October and 18.8 percent a year ago.
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