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Traditional Home Sales Becoming More Frequent in San Diego County

Traditional Home Sales Becoming More Frequent in San Diego County

2012 Year to Date Transaction Trend Report
Fidelity Title Company recently released its Transaction Trend Report for the year to date, and it contained good news regarding the San Diego housing market. The percentage of home purchased that were traditional home purchases increased in market share, while short sales, REO’s (foreclosure sales), and auctioned off properties decreased since the start of the new year.

The Reports Findings

Since January the percentage of home transactions that were the result of foreclosures (REOs and Auctions) have decreased significantly in San Diego County. REOs, which made up 21% of the housing market now is hovering around 12% of homes sold in August. Over the same time period foreclosure auctions have decreased from 10% of the market to around 5%. According to Zillow, during the course of 2012, the foreclosure rate has been cut nearly in half from 11 foreclosures per 10,000 homes to 6.3 per 10,000 home each month. Foreclosure rates have not been this low in San Diego since mid-2007.

Most of the market share growth has been in traditional sales. Last month, more than 60% of homes sold in the county were “traditional” up from 45% in January. This is most likely because finally after almost 5 years of decline, home values are finally on the rise not just in San Diego, but nationally as well.

Many of the bad loans that resulted in the financial crisis have either been refinanced or have unfortunately foreclosed or sold short already. Increasing home values are a good (yet early) step in the recovery of not only the housing market, but also the national economy.

Types of Homes Sales

Traditional Home Sales
These are transactions in which the house is sold by the owner, who then uses the proceeds from the sale to pay off the lien. This assumes that the value of the home is greater than the amount the homeowner owed on the lien.

Short Sale
The house is also sold by the owner, but for less than the remaining balance on the lien (underwater homes). This means that the current lien holder will not be completely paid back for the loan by the current owner.

Real Estate Owned (REO)
Occurs when a home is foreclosed upon by its owner and is not sold successfully at auction. REO’s are generally owned by the previous lien holder such as a bank or government agency and sold much like traditional and short sales.

A public auction of a foreclosed property by the lien holder. The process varies by property and jurisdiction.

How long does a borrower have to wait to get financing after a Foreclosure or Short Sale?

While we are glad to see that the home sales in San Diego are trending towards more traditional sales, we do have a large population of people who have recently been through a short sale or foreclosure.

There is a misconception that after having gone through that type of financial challenge, you won’t be able to obtain financing on the future. That isn’t the case. Borrowers who take a proactive approach to their home loan situation will find there is a light at the end of the tunnel.

Please feel free to call Gary Giffin or reply with any questions about San Diego Real Estate.  I look forward to working with you

Website contact for all your Real Estate


Pros and Cons of Renting vs. Buying a Home San Diego

Pros and Cons of Renting vs. Buying a Home
Written by Samuel Scott Financial Group on August 17, 2012
At some point in your life, you will ask yourself the question, “Is it better to rent or to buy?” and the answer is almost always: “It depends on the state of housing and your circumstances.”

After 2008, when the U.S. economy bottomed out and the housing bubble burst, the standard belief that it’s always better to own, rather than rent, was turned on its head. When home values plummeted and many people found they were upside-down in their mortgages (owed more than the home was worth), renting was suddenly the desired living style.

Since where we live is an emotional decision as well as an economic one, the “Rent vs. Buy” question requires people to examine all the elements of the decision. Here’s one way to break down the issues:

Pros of Buying

Build equity – When you pay rent, you don’t own anything. When you pay a mortgage, you increase your degree of ownership in your home with every payment. Also, you can borrow against your ownership (or equity) in the home to pay for major purchases and you can refinance your home at favorable rates to help fund major purchases.
Submit tax deductions – You can deduct mortgage interest as well as your property taxes. Uncle Sam doesn’t give renters this bonus. Not only that, but if you meet certain requirements the IRS won’t apply a “capital gains” tax on your profits from the sale of your home. In addition, those who work from home may be eligible to take deductions for their home office and portions of utilities.
Have creative control – You like dozens of pictures on the wall? Well, hammer away — they are your walls now. Like the color mango? Go ahead and paint. Wish you had another room? Go ahead and add one.
Maintenance choices – If you own a home, you can decide how to approach maintenance, either doing it yourself or picking your own contractor. If you live in a rental, you are at the mercy of the landlord when repairs are made and how.
Pride of ownership – It might not make sense for everyone, but having a home you own is still the ultimate American Dream.

Pros of Renting

Lower cost upfront – As a renter, you will be required to pay first and last month’s rent and perhaps a security deposit for a pet. If you buy, you will be required to pay a hefty down payment, plus costs for the home inspection, closing costs and other potential items such as a survey and sewer scope. It’s a difference of a few thousand dollars if you rent compared with tens or even hundreds of thousands of dollars if you buy. Freedom and flexibility – If you are new to the area, you can rent and use this time to check out neighborhoods to see where you might possibly want to buy. By renting you can test an area without committing to it.
Invest money elsewhere – You can take money that would normally be spent on a down payment and house costs and invest in the stock market or other investment opportunities that could get a better return on value, depending on location.
Uncertainty in your career — If you think you might need to move in the near future, or are mulling job changes where you could be relocated elsewhere in the country, renting affords the freedom to come and go as needed.
Uncertainty in income – If you expect a pay hike or pay cut in the near future, that can change your borrowing ability as well as impact your ability to pay a mortgage.
Time to establish credit – Got bad credit? By creating a history of on-time rental payments, it can help you build good credit that you would need to qualify for a mortgage.
No maintenance – When the pipe leaks under the sink, you don’t head to your nearest hardware store, you head for the telephone and call the landlord.
Incidental expenses – Occasionally, the landlord might pick up costs for utilities such as water, sewer, garbage, and in some cases heat and hot water as well.

The Downsides of Renting

You may have no control over the fluctuation of your rent.
You might be limited in decorating the home or apartment.
You won’t build equity in your home.
You are subject to the landlord’s decisions.

The dynamics of real estate markets across the U.S. vary greatly. This reality requires each consumer to be fairly sophisticated not only in terms of their own finances, but about all the data for the market in which they are looking. In San Diego, for example, the costs of renting is very high and home prices are very low. That means that it is currently a better financial move for most people to buy a home if they can.

What’s better for you?

Find out whether it makes more sense for YOU to buy or rent a home with this calculator. Simply enter in the amount of your monthly rent and compare it to the monthly mortgage payments of a home. Keep changing the numbers until you find a scenario that fits your personal situation.

Although rent will save money in the short term, over the life of a loan purchasing a home is actually less expensive from a monthly payment perspective.

Feel free to contact Gary Giffin at also


FHA Home Loans: the Requirements, Guidelines, Limits & Rates

FHA Home Loans: the Requirements, Guidelines, Limits & Rates Video

FHA Loans are great loans for first-time home buyers, as they tend to more relaxed requirements, giving new borrowers greater flexibility.

FHA loans are backed by the Federal Housing Administration, which means that the FHA guarantees that a lender will not have to write off a loan if the borrower defaults.  Because of this guarantee, lenders are typically more willing to finance large mortgage loans.

Typically, FHA loans tend to have more lax requirements than conventional loans.  Home buyers can put as little as 3.5% down, must have a minimum FICO score of 620, and will have to have mortgage insurance for a minimum of five years.  To qualify for a FHA loan, a buyer will have to have a reasonable debt to income ratio and decent credit. In San Diego County, the FHA County loan limits are up to $697, 500 for a single- family home.

The general documentation needed is still the same as other loans.  Borrowers will need to submit tax returns and W-2 statements for the last two years, bank statements and pay stubs for the last two months, and a credit report. Based on this information, a Mortgage Advisor will be able to determine the loan amount and rate a potential buyer qualifies for.

It is important to sit down with a qualified and knowledgeable mortgage expert when applying for a home loan, as they can help share their knowledge and expertise to make your home buying experience a pleasant one.

Please feel free to call Gary Giffin or reply with any questions about San Diego Real Estate.  I look forward to working with you in 2012.

Website contact for all your Real Estate

La Jolla Real Estate Sales Market is still on the way up in 92037 Zip Code

La Jolla Windnsea 92037

Great News:
After a Market High in 2005 and a 6 year decline,
Real Estate has the first signs of recovery and continuous climb back up.

Volume Up
Price Point Up
Foreclosures Down
Interest Rates Down
Inventory Down 

See Attached PDF Sales sheet

La Jolla Real Estate SalesJan – May 2012

Sales for May – 69

Foreclosures (REO) for May – 3

SFH Sales for May  –  31
Condo Sales for May – 34

2012 Total
Total Sales for the year  –  285

Total Sales over 1.5 Mil  –  72Total Sales over 2 Mil     –  37Total Sales over 3 Mil     –  13

Total Sales over 5 Mil     –   2
Comparative Stats are for First Five Months of Each Year

Median SFH 2012  –  $1,476,000Median SFH 2011  –  $1,340,000 Median SFH 2010  –  $1,324,000

Median SFH 2009  –  $1,470,000

Median SFH Sale Price 2005 – $1,750,000

Median SFH Sale Price 2000 –      $855,000Median SFH Sale Price 1995 –     $488,000
 Gary Giffin, Middleton & Associates Real Estate in La Jolla zip code 92037.
website, or San Diego Coastal Real Estate at

La Jolla Del Mar Bank Owned homes Homes Quick search

Bank Owned Foreclosure Homes La Jolla Del Mar

New Website to find latest Bank Owned Foreclosures , REO & Short Sales in San Diego Coastal Communities. Search and find in La Jolla and neighboring areas like BirdRock, Lower Hermosa & The Village. Also Find Short Sales & Bank Owned Homes in PB Pacific Beach & Del Mar / Torrey Pines in the North Coast Areas. Cover All zip codes 92037, 92019 & 92014. Use the website link below to search all home prices.

Call Gary Giffin if you have any questions or need assistance

La Jolla Real Estate Sales Jan – Feb 2012 Market Update 92037


La Jolla Ocean View Lot







La Jolla Real Estate Sales

Jan – Feb 2012

Total Sales for Jan – 33

Total Sales for Feb – 48

SFH Sales for Jan  –  15

SFH Sales for Feb  –  24

Condo Sales for Jan – 16

Condo Sales for Feb – 22

Foreclosures (Returned to Bank) for 2012 – 11

Total Sales for the year  –  81

Total Sales over 1.5 Mil  –  18

Total Sales over 2 Mil     –  10

Total Sales over 3 Mil     –  1

Total Sales over 5 Mil      – 0


Comparative Stats are for First Two Months of Each Year


Median SFH Sale Price 1990 –     $640,000

Median SFH Sale Price 1995 –     $488,000

Median SFH Sale Price 2000 –      $855,000

Median SFH Sale Price 2005 – $1,750,000

Median SFH 2009  –  $1,470,000

Median SFH 2010  –  $1,288,000

Median SFH 2011  –  $1,250,000

Median SFH 2012  –  $1,395,000

: Gary Giffin, Middleton & Associates Real Estate in La Jolla zip code 92037.
website, or San Diego Coastal Real Estate at

Short Sales: First-Time Buyers Questions

8000 first time home buyer credit

Short Sales: Answers for First-Time Buyers

Many people in the market today are first-time home buyers who would not have been able to buy when home prices were higher. Enticed both by lower prices and bank promotions, these eager hopefuls are have taken the signs of deals as the best chance to make their first real estate move .

While all home buyers need help with the short sale process, it’s especially challenging to address the needs and concerns of a first-time home buyer who has decided a short sale is the home for them. Here’s how to get answers to first-time home buyers’ top three questions about short sales.

1. How long does it take for a bank to approve a short sale?

This is the million-dollar question. While it takes an average of three to six months, the timeline – and the process – vary quite a bit from one bank to another.

Short sale approval timelines depend on the bank (some just take longer than others). While each bank has different short sale guidelines, the short sale has to make sense to the bank. The more sense the short sale offer makes to the bank, the faster the approval process.

Here are some things that slow down the process by several weeks or more – these usually involve more people or more factors:
•Multiple liens on the property
•A third party negotiating the short sale on behalf of a seller. Some states allow third parties to do this, for a fee; some states, like Virginia, limit this to real estate licensees, attorneys, and employees of attorneys.
•Private Mortgage Insurance (PMI) on the property
•Additional investors

Action: To make an accurate prediction about the short sale timeline for a particular property, research the bank’s general timelines, the property’s liens, and whether there is PMI before writing the offer.

2. Will the bank make repairs to the property?

The short answer is, probably not.

Here’s why:
•The bank does not have possession of the property and has no authority to make repairs on behalf of the seller.
•Many short-sale sellers do not have the financial means to make repairs.
•Many banks require the short sale to be sold strictly “as-is” and do not allow the seller to pay for any repairs.

Why wouldn’t a bank allow the seller to make repairs? your buyer may ask. A short sale is a sticky situation for a bank, and that the bank wants to avoid potential liability. For example, if the bank allowed the seller to make repairs and the repairs proved to be faulty, the buyer might potentially hold the bank liable, since the seller doesn’t have money (which is how the short-sale situation came about in the first place).

Action: Find out how the bank and the seller feel about making possible repairs. A short-sale buyer needs to understand that the home will most likely be sold strictly “as-is” and all repairs will be at their expense.

3. How do other types of debt affect the short sale outcome?

Many short-sale sellers are more than just “house-poor.” Many have additional debts that place a cloud on title. These include tax liens – income and property, medical liens, mechanic’s liens, and child support judgments.

Depending on your state, some creditors can try to collect debt by going to civil court and getting a judgment lien placed on the property against the homeowner. These liens must be cleared before the short sale transaction can be closed.
•Surprisingly, tax liens are probably the easiest to clear off the title. The IRS has several avenues to collect back taxes, and doesn’t want to become a real estate holding company. Removing a tax lien can take up to 120 days, so it is imperative that this process is started well in advance of the short sale.
•Medical liens can usually be negotiated and a payment plan worked out. However, this is a time-consuming process and needs to be started as soon as possible.
•Mechanic’s liens are a little harder to get removed. There is not much recourse for tradespeople and bad debts.
•Child support judgments are also difficult to remove because they usually involve government agencies.

In short, additional debts can tie up the short sale process.

Action: Make sure to ask the listing agent if a preliminary title search has been performed on the property so you can advise your buyer about possible obstacles.

The more information you can offer your first-time home buyer, the more confident they can be about the transaction. The more confident they are about the transaction, the more likely they will see the transaction through to the closing table.
Please feel free to call Gary Giffin or reply with any questions or concerns. I look forward to working with you in 2012.

Website contact for all your Real Estate Needs: