LOS ANGELES (April 24) – California pending home sales posted higher for the third consecutive month in March, rising from both the previous month and year, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.  Additionally, the share of distressed sales dropped for the second consecutive month, as equity sales typically increase with the start of the spring home buying season.

Pending home sales:

C.A.R.’s Pending Home Sales Index (PHSI)* rose from a revised 126.5 in February to 143.7 in March, based on signed contracts.  The March 2012 index was the highest since April 2009, when the PHSI was 146.9.  The index also was up from the 128.9 index recorded in March 2011, marking the eleventh consecutive month that pending sales were higher than the previous year.  Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.

Distressed housing market data:

• The share of equity sales – or non-distressed property sales – compared to total sales increased in March to 55.4, up from 51.1 percent in February.  Equity sales made up 50.2 percent of all sales in March 2011. • Meanwhile, the total share of all distressed property types sold statewide decreased in March to 44.6 percent, down from February’s 48.9 percent and from 49.8 percent in March 2011. • The share of short sales was down again in March.  Of the distressed properties sold statewide in March, 21.1 percent were short sales, down from February’s share of 23 percent but up from last March’s share of 20.1 percent. • The share of REO sales also declined in March to 23.1 percent, down from February’s 25.2 percent and down from the 29.4 percent recorded in March 2011.

If you are going to take advanatage, you are almostout of time. Call me now and I mean yesterday!

Also, if you need to short sell, time is running out. You need to complete it by Dec 31st. See previous posts and go to www.shortsaledignity.com

What is going on? Well….. there are lots of buyers and interest rates are still at record lows. There has been a small softening in lender requirements (a little easier to get a mortgage).

Now ….just to find a house (even a condo). That is the tough part. Nothing for sale.

We can say one thing. Everything that comes on the market is selling quickly and at the high end of its market value. There definitely is a upward pressure on price. But…..although buyers are willing to pay higher than market value, the appraisals are coming in at lagging market value. If the buyer can’t mke up the difference , the property is going to someone else.

Any buyer with cash really has a huge advantage right now, they can raise the market values across the board.

So….where are all the sellers? The foreclosures are predominantly in the far north, far west and far south suburbs. Not much going on in metro. Short sales? They will still be out there and be around for a while but with the tax relief expiring in December, many have already accomplished this task if they are going to.

Many other potential sellers have refinanced and locked in incredibly low rates and have seen their payments fall. Those that couldn’t refinance have accomplished a loan modification.  Again, a  great payment now, they are not going to sell.

Who is left? Not too many, and very few willing to sell at the current value structure. How about new construction?

When was the last time you saw more than 2 cranes in San Diego? Although there are a few builders around town, a real influx of new homes hasn’t happened yet. (they too want to wait for the prices to go up).

Everything is pointing to double digit increses in home prices in either 2014 or 2015. Let’s say it will be 3 to 5% the balance of 2012, 5 to 8 % in 2013 and being the optomist that I am 13 to 17 % in 2014. If credit gets looser and appraisers adjust to the market, these estimates may be low.

So what’s the point? If you still want to try and get a great deal, in San Diego  -  buy now!!!   If you can find something. For most, the bargain hunt at the bottom has passed them by. Make sure your Realtor shows you everything that comes on the market and be prepared to pay above the list price. Remember however, this will still be a great price at an incredible monthly payment. The interest rate is still your best friend, keep it around for 30 years!

If you still want to short sell, or know somebody who does … and you want to beat the December 31st deadline,  please check out shortsaledignity.com .

You will find information on many foreclosure alternatives. In the meantime, go buy something!

Check out your various options at www.shortsaledignity.com . But the time to act is NOW!

According to Gil Charney, principal analyst at The Tax Institute at H&R Block, the specific criteria to have forgiven debt excluded are the debt must have been incurred to buy, build or substantially improve the residence, called “acquisition debt, and the property must be the taxpayer’s primary residence.

Also, the exclusion applies only to acquisition debt up to $2 million, or $1 million for married taxpayers filing separately, and cancelled mortgage debt not used to buy, build, or improve a principal residence is not eligible for the exclusion, but may be excludable under a different provision, such as bankruptcy or insolvency, Charney added.

Under the Mortgage Debt Relief Act of 2007, the provision is for debt forgiven between 2007 and 2012.

For those considering a short sale, Octavio Nuiry of Realty Trac warns that waiting to do a short sale after December 31, 2012 may lead to tax penalties that could have been avoided for the homeowner unless the bill gets extended.

Warren Buffett, considered the greatest investor of our generation, told a close personal friend that that buying a home right now is the opportunity of a lifetime. The reason is simple. We are at a historical crossroads. We are at or near the bottom of the housing market pricewise while mortgage rates are at an all-time low. This confluence of factors creates the perfect storm for home ownership because, as percentage of income, owning a home is more affordable now than at any time in history.

Buffett was asked about real estate on NBC’s financial program Squawk Box. When asked if it was time to buy real estate, he responded “If I had a way of buying a couple hundred thousand single family homes, I would load up on them.” It’s not about price… it’s about value!

Buffett was then asked “Is buying a home better than investing in stocks right now?”

His answer? “If I knew where I was going to want to live the next five or ten years I would buy a home and I’d finance it with a 30 year mortgage. It’s a terrific deal.”

This comment is incorrect and  misleading to those who don’t know any better:

“A surprising number of U.S. listings – about 1 in 4 — are sold by a real estate agent who also represents the buyer. How, we wondered, does this work out for the seller who originally hired the real estate agent?” 

The quoted statistic is for a Brokerage that represents both  – Dual Brokerage  (not necessarily the same agent and in most cases, not).

There are really nowhere near that many where the AGENT represents both sides.

Dual agency is not the same agent ( in most cases) just the same brokerage so I would want to investigate why a buyer and seller with 2 seperate agents in the same brokerage would end up with a lower sales price (percentage wise) than 2 agents with “different” companies. Also, if a buyer has a signed buyer broker agreement with Agency x in Metro SD (30%  of the listings) it would really suck if there was no dual agency and the poor buyer has eliminated 30% of the market for purchase.  What would the buyer do if he or she found a house listed by Agency X that they really wanted? I guess the buyers agent could let them out of the contract and place the buyer with Agency Y or other agency for a referral fee. I think the real issue is should an individual agent be able to represent both sides. That is where real conflict lies.

If a property is listed with Redfin, does that mean it is off limits to all Redfin buyers?

Also statistically speaking, the chances that every instance is less with the daull agency  (22 out of 22 occurances) when the initial assumption is that it probably should be neutral infers that there are problems with the data. Before I accepted the results and conclusions, I would want to completely research the data collection.

Please feel free to comment or call me with any questions.  Also, get a free “Fighting Foreclosure” book at www.shortsaledignity.com. Also, San Diego’s best home search can be found at www.AtHomeInSanDiego.com.

Tax Relief is Expiring

The MTDFRA ( Mortgage Tax Debt Foregiveness Relief Act) and many state counterparts will expire at the end of 2012. That means that if the transaction closes after that date the homeowner will need to pay taxes on the amount forgiven.  This is HUGE! If you are having any trouble paying your mortgage and see ANY chance that you may not be able to pay (even if you’ve already modified your loan) short sell the house now.  Everything is perfect for you right now. Go back to renting for a little while then buy again in 2 years! The HAFA short sale program has several benefits and you might qualify for a HAFA short sale which allows the seller up to $3,000 to assist in closing costs.

Check out the HAFA short sale guidelines now and contact your local Realtor  ( in San Diego that is me Alan Schmitt). Email or call me and I will refer you to an incredible short sale expert in your area.

Check out the HAFA short sale guidelines now and contact your local Realtor  ( in San Diego that is me Alan Schmitt). Email or call me and I will refer you to an incredible short sale expert in your area.

The short sale process can take 4 to 5 months and with the deadline closing in, I expect a deluge of short sales hitting the system within the next 6 months. Have yours completed and be well on your way to your next purchase!  Don’t get caught with your pants down.  Act Today.

The short sale process can take 4 to 5 months and with the deadline closing in, I expect a deluge of short sales hitting the system within the next 6 months. Have yours completed and be well on your way to your next purchase!  Don’t get caught with your pants down.  Act Today.

Check out short sale information at www.shortsaledignity.com

A free book for you at www.canishortsell.com

There are two builders right now D.R. Horton and Lennar. Lennar has Terraza and the less expensive Belmont both worth the stop! D.R.Horton has Altaire.  The models are incredible and worth perusing.

Certified New Home Specialist

I am a new construction fanatic and a CNHS (Certified New Home Specialist). If you are interested in looking in San Marcos, call me, I will take you on a tour of all the models at San Elijo. And…I am a serious negotiator and will get you an incredible deal over there (but you have to go with me – don’t worry, very friendly guy here). Call me at (619) 985-6528.

Feel free to check out the community and the floorplans, but…call me before you visit – your wallet will thank you in the end.

I am also a HAFA certified short sale specialist in case you know anyone with mortgage problems. Avoid foreclosure at all cost.  Check out www.shortsaledignity.com.

The mortgage companies now have  (finally) standard processes for handling Short Sales. The entire process now takes about 45 days.  You have to have somewhat of a hardship and not just a desire to get out of an upside down property.

For some, the change in the economic environment might be enough if living on the edge.

If you are in San Diego and think a short sale is for you, call me, we can easily determine the right path for you.

A few KEY points:

The effect on your credit is minor!

You do have to move out of your house or condo.

Fighting Foreclosure

The new HAFA short sale provides $3,000 to help with relocation.

If a San Diego short sale is for you, I am a HAFA certified agent and am happy to assist you.  CALL ME! (619) 985-6528.  If you are anywhere else, I can still help.  I will refer you to the top Certified Residential Specialist  (CRS) in your area.

Here is a link to my free book…..Fighting Foreclosure.

Come back then. In the meantime, please check out my website and get my free book Fighting Foreclosure at www.shortsaledignity.com and for the most advanced state-of-the-art San Diego property search which includes the entire San Diego MLS head straight for the At Home In San Diego website:

www.AtHomeInSanDiego.com

What we didn’t find was a whole bunch of construction in the metro area. It seems even the high rise construction downtown has come to a halt. I have an incredible search for new homes at www.athomeinsandiego.com.

Any mortgage challenges? Get my free book Fighting Foreclosure at the best short sale site on the internet:

Short Sale Dignity . com