Tamara Z Homes

San Diego Housing Sales and Prices Take a Leap in March

Tamara Z — Tue, 07 May 2013 02:09:27 +0000

According to the Greater San Diego Association of Realtors statistics, both sales and prices in San Diego County surged once again with detached and attached homes making gains both in sales volume and price.

Sales volume for detached homes from February to March lept ahead of February with a 38.5% increase. Condo/townhome sales increased by 31.4% over February 2013 sales volume!

These sales volume gains are incredible, considering that the total number of units for sale in December 2011 was about 11,000. In December of 2012, there were a mere 4,100 units available for sale--a huge gain in sales, despite a very low inventory.

Getting to the nitty-gritty ($$$), prices in March increased both month-over-month and year-over-year as well, with the median price of detached homes increasing by 5.4% over February's median, and attached homes increasing a whopping 14% over February.

Seasonal trends do play a role in volume and price, so a month-to-month comparison helps to put things in proper perspective; consider that the median price of detached homes in the San Diego area increased by 18.5% over the median in March of 2012. Attached homes cost about 29.5% more this March than they did last March. THAT is significant.

To better illustrate the increase, a home priced at $500,000 last March cost this year's buyer $592,500. A condo that sold for $250,000 last March will have cost a buyer $323,750.

Still wondering why buyers are scrambling to get into the market NOW?

Feel free to contact me directly if you would like an expanded rundown of the market, or if you are ready to either buy or sell. I'm here for you.

February 1013 Sales Confirm Steady Home Price Increases in San Diego County

Tamara Z — Thu, 28 Mar 2013 20:45:56 +0000

Hold onto you hats! San Diego real estate is SMOK'IN!

February median home price numbers are in for San Diego County and it's no suprise that the numbers are up---way up--over February 2012!

Here's a quick rundown of stats according to the Greater San Diego County Association of Realtors (SDAR):

The median price of San Diego County single-family homes rose 13.9% in February compared with February 2012.
The median price for San Diego County condos rose 26% year-over-year.
The number of listings available for purchase dropped 37% year over year for February.
Despite over a third less inventory, the number of single family detached homes sold this February were about the same as in 2012, and condo sales rose by 1.7%.
Average days on market down 27% for condos, down 22% for detached homes (Feb 2013 compared to Febrary 2012).

There's no disputing this is (still) a tough market for buyers--even those able to pay all-cash. Multiple-offers are the norm rather than the exception. Well-qualified buyers with higher down payments have a higher success rate of getting their foot in the door on the property they want.

How long sellers have the upper hand will depend on inventory levels. I expect higher prices will draw more sellers into the market and increase the inventory in the months ahead, but how much and how quickly is the great unknown. Meanwhile, prices will continue to push upward until supply begins to meet demand.

Tips for today:

If you selling--particularly if you are selling a less than perfect property--take advantage of the low inventory situation to move your property quickly and get top price in today's market! If you plan to buy something else, get working on it quickly to get the best possible price (and rates) on your new home.

Buyers--I know it's brutal out there, but if you remain motivated and diligent, you will likely save money on the purchase price and also catch the lowest interest rates we are likely to see during the remainder of our lifetime.

As always, if you have any questions, or are ready to sell or purchase a home in the San Diego area, give me a call!

January Sales Confirm San Diego Prices Continue to Rise

Tamara Z — Wed, 27 Feb 2013 02:02:43 +0000

There's no question that demand for residential real estate is high in San Diego County. Commercial residential properties (a.k.a. apartment buildings) are also HOT!

January 2013 sales increased sharply over January 2012 in both single family detached and attached homes. Detached home sales jumped 14.8% and attached home sales rose 7.5%. Considering the very low inventory available to choose from this year vs. last, this increase is impressive.

The median sales price in January 1013 for detached homes increased 11.7% over the same month the previous year, a significant gain. Attached home prices saw an even larger year-over-year increase--a whopping 16.7%!The median sales price increase has many would-be sellers smiling wide with optimism at being able to move on. It's unknown how many homeowners have been waiting to sell in order to upsize, downsize or cash out of the market, but we may get a feel for that in the near future.

I expect the inventory shortage will wane as sellers finally decide it's safe to sell. Those selling sooner will likely have a much shorter shelf-life, and if you are wanting to make a move to another property while prices (and perhaps more importantly, interest rates) are advantageous, you may want to get ahold me and get the ball rolling.

Buyers...need I say it again? Hurry!

Have a great day and don't let much of tomorrow go by before you give me a call!

FHA Loan Cost Increases Announced, Beginning April 1, 2013 – FHA Buyers: Hurry!

Tamara Z — Fri, 08 Feb 2013 00:38:51 +0000

Ok, if the fact that prices and interest rates heading upward are not enough to get you off the fence and shopping hard for your new home, this news should light a fire under you if you are planning to purchase with an FHA loan! Your mortgage costs are about to go up! Not sure what the financial impact will be after the 1st of April? Contact your loan officer today. What you may save by buying prior to April 1st may be well worth picking up the pace for:

FHA TAKES ADDITIONAL STEPS TO BOLSTER CAPITAL RESERVES

New premium structure will help protect FHA’s MMI fund

WASHINGTON – As part of ongoing efforts to encourage the return of private capital in the residential mortgage market and strengthen the Federal Housing Administration’s (FHA) Mutual Mortgage Insurance Fund, Acting FHA Commissioner Carol Galante today announced a new premium structure for FHA-insured single family mortgage loans. FHA will increase its annual mortgage insurance premium (MIP) by 0.10 percent for loans under $625,500 and by 0.35 percent for loans above that amount. Upfront premiums (UFMIP) will also increase by 0.75 percent.

These premium changes will impact new loans insured by FHA beginning in April and June of 2012. Details will soon be published in a Mortgagee Letter to FHA-approved lenders.

“After careful analysis of the market and the health of the MMI fund, we have determined that it is appropriate to increase mortgage insurance premiums in order to help protect our capital reserves and to continue encouraging the return of private capital to the housing market,” said Galante. “These modest increases are one of several measures we are taking towards meeting the Congressionally mandated two percent reserve threshold, while allowing FHA to remain a valuable option for low- to moderate-income borrowers.”

The Temporary Payroll Tax Cut Continuation Act of 2011 requires FHA to increase the annual MIP it collects by 0.10 percent. This change is effective for case numbers assigned on or after April 1, 2012. FHA is also exercising its statutory authority to add an additional 0.25 percent to mortgages exceeding $625,500. This change is effective for case numbers assigned on or after June 1, 2012.

The UFMIP will be increased from 1 percent to 1.75 percent of the base loan amount. This increase applies regardless of the amortization term or LTV ratio. FHA will continue to permit financing of this charge into the mortgage. This change is effective for case numbers assigned on or after April 1, 2012.

FHA estimates that the increase to the upfront premium will cost new borrowers an average of approximately $5 more per month. These marginal increases are affordable for nearly all homebuyers who would qualify for a new mortgage loan. Borrowers already in an FHA-insured mortgage, Home Equity Conversion Mortgage (HECM), and special loan programs outlined in FHA’s forthcoming Mortgagee Letter will not be impacted by the pricing changes announced today.

Taken together, these premium changes will enable FHA to increase revenues at a time that is critical to the ongoing stability of its Mutual Mortgage Insurance (MMI) Fund, contributing more than $1 billion to the Fund, based on current volume projections through Fiscal Year 2013.

Exterior Replacement Projects Provide Biggest Return on Investment for Homeowners, Say Realtors®

Tamara Z — Tue, 05 Feb 2013 22:05:31 +0000

Thinking about sprucing up your home and wonder where to get the most bang for your buck? First of all, if you are not planning on selling your home in the immediate future, take into consideration what is most important for your own use and enjoyment. It's important to prioritize--starting with the projects you will get the most immediate benefit from.

Once you've identified your top-priority projects, take into consideration the return on investment (ROI) for those projects you want to start with. Once you have and estimate ROI, it may factor in your final decision as to which projects stay at the top of the list.

Finally, while you want to customize your home to meet your needs and taste, always take into consideration that you may decide to sell at some point in the future. For example, while you may be an avid Southwest decor fan, it may not be wise to install Kokopelli tile in the bathroom and kitchen, which would be expensive and difficult for the next owner to change out.

Enlist the help of a design specialist, and consider if--should you put your home on the market after the work is completed--the changes you are making would also appeal to a majority of potential buyers.

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WASHINGTON (January 29, 2013) – Homeowners looking for the most return on their investment when it comes to remodeling should consider exterior replacement projects. According to the 2013 Remodeling Cost vs. Value Report, Realtors^® rated exterior projects among the most valuable home improvement projects.

“Realtors^® know that curb appeal projects offer great bang for your buck, because a home’s exterior is the first thing potential buyers see,” said National Association of Realtors^® President Gary Thomas, broker-owner of Evergreen Realty, in Villa Park, Calif. “Projects such as siding, window and door replacements can recoup more than 70 percent of their cost at resale. Realtors^® know what home features are important to buyers in your area and can provide helpful insights when considering remodeling projects.”

Results of the report are summarized on NAR’s consumer website HouseLogic.com, which provides information on dozens of remodeling projects, from kitchens and baths to siding replacements, including the recouped value of the project based on a national average. According to the Cost vs. Value Report, Realtors^® judged a steel entry door replacement as the project expected to return the most money, with an estimated 85.6 percent of costs recouped upon resale. The steel entry door replacement is the least expensive project in the report, costing little more than $1,100 on average. A majority of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects; all of these are estimated to recoup more than 71 percent of costs.

Three different siding replacement projects landed in the top 10, including fiber cement siding, expected to return 79.3 percent of costs, vinyl siding, expected to return 72.9 percent of costs, and foam backed vinyl, expected to return 71.8 percent of costs. Two additional door replacements were also among the top exterior replacement projects. The midrange and upscale garage door replacement were both expected to return more than 75 percent of costs.

According to the report, two interior remodeling projects in particular can recoup substantial value at resale. A minor kitchen remodel is ranked fifth and is expected to return 75.4 percent of costs. Nationally, the average cost for the project is just under $19,000.

The second interior remodeling project in the top 10 is the attic bedroom, which landed at number eight and tied with the vinyl siding replacement with 72.9 percent of costs recouped. With an average national cost of just under $48,000, the attic project adds a bedroom and bathroom within a home’s existing footprint. The improvement project projected to return the least is the home office remodel, estimated to recoup less than 44 percent.

The 2013 Remodeling Cost vs. Value Report compares construction costs with resale values for 35 midrange and upscale remodeling projects comprising additions, remodels and replacements in 81 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 15th consecutive year that the report, which is produced by Remodeling magazine publisher Hanley Wood, LLC, was completed in cooperation with NAR.

Realtors^® provided their insights into local markets and buyer home preferences within those markets. The 2013 national average cost-to-value ratio rose to 60.6 percent, ending a six-year decline. The ratio represents nearly a three-point improvement over 2011-2012. Lower construction costs are the principal factor in the upturn, especially when measured against stabilizing house values. In addition, the cost-to-value ratio improved nationally for every project in this year’s report and is higher than it was two years ago for both remodeling and replacement projects.

“A Realtor^® is the best resource for helping homeowners decide what improvement projects will provide the most upon resale in their market,” said Thomas. “Each neighborhood is different, and the desirability and resale value of a particular remodeling project varies depending on where you live. When making a home remodeling decision, resale value is just one factor that homeowners should take into consideration. Consult a Realtor^® to make sure you are making the best decision.”

Most regions followed the national trends; however the Pacific region, consisting of Alaska, California, Hawaii, Oregon and Washington, once again led the nation with an average cost-value ratio of 71.2 percent, due mainly to strong resale values. The next best performing regions were West South Central, South Atlantic, and East South Central. These regions attribute their high ranking to construction costs that were lowest in the country. While still remaining below the national average, most remaining regions showed strong improvement over last year. These are Mountain, New England, East North Central, Middle Atlantic, and West North Central.

To read the full project descriptions and access national and regional project data, visit www.costvsvalue.com. “Cost vs. Value” is a registered trademark of Hanley Wood, LLC.

HouseLogic is a free source of information and tools from the National Association of Realtors^® that helps homeowners make smart decisions and take responsible actions to maintain, protect, and enhance the value of their home. HouseLogic helps homeowners plan and organize their home projects and provides timely articles and news; home improvement advice and how-tos; and information about taxes, home finances, and insurance.

Founded in 1976, Hanley Wood, LLC, is the premier media and information company serving the housing, commercial design and construction industries. Through its operating platforms, the company produces award-winning magazines and websites, marquee trade shows and events, market intelligence data, and custom marketing solutions. The company is also North America’s leading publisher of home plans.

The National Association of Realtors^®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

Media Contact: Leanne Jernigan / 202-383-1290 / Email

What is a Tax Deferred, or “Section 1031″ Exchange?

Tamara Z — Thu, 24 Jan 2013 20:22:46 +0000

Real estate investor activity is not only prevalent in San Diego County, but has become a nationwide phenomenon. With real estate prices and interest rates so low, investors (large and small) are hurrying to make the most of this perfect window of opportunity.

Seasoned investors are likely familiar with the tax advantages that 1031 Exchanges can provide, but for those of you who are newer to the art of real estate investment, you’ll want to understand what it is, and how it may benefit you in your own investment journey.

While there's been less 1031 Exchange business in the recent recessionary years, I expect we will see much more utilization of this tax saving, portfolio-building strategy going forward.

So what are 1031 Exchanges, and who can benefit? Lawyers Title Company provided the summary and Q & A below that covers the basics, but before embarking on any significant investment journey, be sure to consult with your attorney and/or your financial and tax advisors.

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Every Section 1031 Exchange transaction is different. These "Frequently Asked Questions" are intended to answer general inquiries. The application of these principles will depend on the specific facts of each transaction. Always consult a competent Qualified Intermediary, attorney, or tax advisor to determine how an exchange may best be structured to accomplish your investment objectives.

Q - What is a tax-deferred exchange?

In a typical transaction, the property owner is taxed on any gain realized from the sale. However, through a Section 1031 Exchange, the tax on the gain is deferred until some future date.

Section 1031 of the Internal Revenue Code provides that no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business, or for investment. A tax-deferred exchange is a method by which a property owner trades one or more relinquished properties for one or more replacement properties of "like-kind", while deferring the payment of federal income taxes and some state taxes on the transaction.

The theory behind Section 1031 is that when a property owner has reinvested the sale proceeds into another property, the economic gain has not been realized in a way that generates funds to pay any tax. In other words, the taxpayer's investment is still the same, only the form has changed (e.g. vacant land exchanged for apartment building). Therefore, it would be unfair to force the taxpayer to pay tax on a "paper" gain.

The like-kind exchange under Section 1031 is tax-deferred, not tax-free. When the replacement property is ultimately sold (not as part of another exchange), the original deferred gain, plus any additional gain realized since the purchase of the replacement property, is subject to tax.

Q - What are the benefits of exchanging vs. selling?

A Section 1031 exchange is one of the few techniques available to postpone or potentially eliminate taxes due on the sale of qualifying properties.
By deferring the tax, you have more money available to invest in another property. In effect, you receive an interest free loan from the federal government, in the amount you would have paid in taxes.
Any gain from depreciation recapture is postponed.
You can acquire and dispose of properties to reallocate your investment portfolio without paying tax on any gain.

Q - What are the different types of exchanges?

Simultaneous Exchange: The exchange of the relinquished property for the replacement property occurs at the same time.
Delayed Exchange: This is the most common type of exchange. A Delayed Exchange occurs when there is a time gap between the transfer of the Relinquished Property and the acquisition of the Replacement Property. A Delayed Exchange is subject to strict time limits, which are set forth in the Treasury Regulations.
Build-to-Suit (Improvement or Construction) Exchange: This technique allows the taxpayer to build on, or make improvements to, the replacement property, using the exchange proceeds.
Reverse Exchange: A situation where the replacement property is acquired prior to transferring the relinquished property. The IRS has offered a safe harbor for reverse exchanges, as outlined in Rev. Proc. 2000-37, effective September 15, 2000. These transactions are sometimes referred to as "parking arrangements" and may also be structured in ways which are outside the safe harbor.
Personal Property Exchange: Exchanges are not limited to real property. Personal property can also be exchanged for other personal property of like-kind or like-class.

Q - What are the requirements for a valid exchange?

Qualifying Property - Certain types of property are specifically excluded from Section 1031 treatment: property held primarily for sale; inventories; stocks, bonds or notes; other securities or evidences of indebtedness; interests in a partnership; certificates of trusts or beneficial interest; and choses in action. In general, if property is not specifically excluded, it can qualify for tax-deferred treatment.
Proper Purpose - Both the relinquished property and replacement property must be held for productive use in a trade or business or for investment. Property acquired for immediate resale will not qualify. The taxpayer's personal residence will not qualify.
Like Kind - Replacement property acquired in an exchange must be "like-kind" to the property being relinquished. All qualifying real property located in the United States is like-kind. Personal property that is relinquished must be either like-kind or like-class to the personal property which is acquired. Property located outside the United States is not like-kind to property located in the United States.
Exchange Requirement - The relinquished property must be exchanged for other property, rather than sold for cash and using the proceeds to buy the replacement property. Most deferred exchanges are facilitated by Qualified Intermediaries, who assist the taxpayer in meeting the requirements of Section 1031.

Q - What are the general guidelines to follow in order for a taxpayer to defer all the taxable gain?

The value of the replacement property must be equal to or greater than the value of the relinquished property.
The equity in the replacement property must be equal to or greater than the equity in the relinquished property.
The debt on the replacement property must be equal to or greater than the debt on the relinquished property.
All of the net proceeds from the sale of the relinquished property must be used to acquire the replacement property.

For more Frequently Asked Questions, please visit

http://1031.org/about1031/faq.htm

San Diego Prices are Rising. Buyers are Buying.

Tamara Z — Tue, 15 Jan 2013 06:11:27 +0000

I've been saying for months that the bottom of the real estate market has come and gone and apparently the media has finally decided to admit that real estate is on the rebound...at a much faster pace than anticipated!

The Greater San Diego Association of REALTORS recently released sales results for December 2012 and if it hasn't already been obvious, the market is JAMMING!

The Median price of a single-family home in San Diego County as of December 2012 was $418,500, an 18% increase over December 2011!

The Median price of condominiums and town homes jumped to $253,000, 23% higher than Dec. 2011.

Despite low inventory, total single family homes sold rose 10% compared to December 2011. Condos and town homes rose 5% year over year.

If you've been "sitting on the fence" waiting for the bottom...I'm sorry to day you've missed it. Good news is, you're still on the lower end of an upward curve so you still have time to ride the appreciation wave.

Interest rates are still at UNBELIEVABLE lows! Wait to long and you'll be paying higher interest rates AND higher prices.

Confused about whether or not you can afford to buy? Not convinced that real estate is an indisputable investment option right now? Maybe it's time you spoke with a real estate professional. Give me a call and let's get you going!

Sellers and wanna-be sellers, things are looking rosy! Inventory is low right now--very low. Demand is high. What that means for you is that you should, at the very least, have your real estate professional check market activity in your area and provide you with an estimated value on your home. If you have been wanting to move up downsize, now is the time to make your move!

Still not sure? Give me a call and let's talk about your particular situation.

Optimistic Economic Indicators for San Diego Economy and Real Estate Values

Tamara Z — Mon, 07 Jan 2013 03:23:11 +0000

The University of San Diego Burnham-Moores Center for Real Estate released economic results for October in their November 30, 2012 report. The results are overall optimistic--the 10th gain in the past 12 months! Things are looking brighter for the local economy in general, but especially bright for real estate values.

San Diego County leads the National Index Residential units authorized by building permits in. This is great news, not only for employment in the construction sector, but also because San Diego needs to increase the number of housing units available to meet demand.

More great news--the unemployment rate is expected to drop below 8% in 2013. 25,000-30,000 jobs are expected to be created, namely professional and business services, health care, and leisure and hospitality, according to the report.

San Diegans have been waiting a long time for good news, and we're happy to recieve it! Click the link below for the full report.

HAPPY NEW YEAR!

USD Burnham-Moores Center for RE, Nov 30 2012

Mortgage Debt Relief Act Extended for Another Year

Tamara Z — Wed, 02 Jan 2013 23:26:26 +0000

Late last night, Congress reached a settlement in the “fiscal cliff” negotiations. As a result, the Mortgage Forgiveness Debt Relief Act has been extended for another year. The measure will continue to exempt from taxation mortgage debt that is forgiven when homeowners and their mortgage lenders negotiate a short sale, loan modification (including any principal reduction) or foreclosure. http://speakingofrealestate.blogs.realtor.org/2013/01/01/senate-%E2%80%98cliff%E2%80%99-bill-retains-mortgage-cancellation-relief/

Loan Limit Update and Other Important News

Tamara Z — Tue, 11 Dec 2012 18:06:49 +0000

Guest blog by Nick Harris, Amerifirst Financial Inc.

Happy Holidays to all!! There are some interesting things going on in our country and I just wanted to highlight some items that will be effecting real estate in 2013.

Conforming Loan Limits for CONVENTIONAL loans will remain the same in 2013. For San Diego County that amount is $546,250.

Loans up to $417,000 – minimum down payment = 5%
Loans above $417,000 and less than $546,250 – minimum down payment = 10%
FHA loan limits are set to expire at the end of the year…sentiment is leaning towards renewing the loan limits into 2013. Thus our San Diego County limit looks to stay at $697,500….unless our Government wants to really hurt the housing market.
The Mortgage Interest Deduction is a main reason many people buy homes instead of renting. Did you know Congress is discussing repealing this? If this were to go thru this could really hurt the housing market. My opinion is that they leave it alone in order to not bother an already fragile housing market
HELOCs are back!!!! Call us to discuss how these can help your borrowers qualify for more. Idea is to use 80% loan to value 1^st Mortgage and HELOC for the 2^nd for another 10% to avoid Mortgage Insurance.
FHA update – FHA’s reserves are running low and there is discussion of increasing the monthly Mortgage Insurance by 0.1%. Basically this means that monthly payments are going up, thus reducing the amount some will be qualified for.
To end on a much brighter note….Home Prices are up by most in 6 years!!!! U.S. Home prices rose 6.3 percent in October compared with a year ago. Largest gain since July 2006.

Mortgage Banker | NMLS 176969

Amerifirst Financial, Inc.

4660 La Jolla Village Drive, Suite 600 San Diego, California 92122

Office: 858-869-2852 |Cell: 858-774-3637 | Fax: 858-750-1381