Shortsalenurse's HAFA Blog

August 10, 2009

Magnets, A Home In Point Loma, Little Gray Men

aircraft_carrierThe other day a few friends of mine met at our favorite San Diego taco stand over looking the Bay. From the vantage point of our table we could see one of the Aircraft Carriers coming into the bay. Our respective careers took us in different directions so three industries were represented. Real Estate Broker, Medicine (MRI TEC) and Banker.

The MRI TEC is always interesting to talk to because he follows advances in science and the Banker and I have educations that were science based. Last time we met he was discussing Cold Fusion as a source of energy, and how someone right here  in San Diego may have worked it out, but our discussions always seen to come back to the ecomony.

Looking out over the bay to the aircraft carrier the MRI Tec told us that he saw a special where the Navy is working on launching planes off Aircraft Carriers with Magnets. I mentioned that I had seen something recently where they believe it is possible that Crop Circles are being created with magnetic forces and the Banker had to chime looking for humor and said, “Money is getting a little easier to borrow but we are not giving it to the little gray men that are making crop circles, yet. ” We all laughed and though about things that had nothing to do with the ecomony for a few minutes.

The Banker started humming a song that had to be inspired by the theme of our discussion and looking to Point Loma he stopped humming and said “Someday I will buy a home on that hill right over there” pointing in the direction of Cabrillo Monument. Well I hope everything gets worked out, the Navy figures out the magnets, little gray men from where ever find a way to borrow money and my friend buys his home in Point Loma, if its a short sale or a foreclosure and he saves a ton of money, even better.

I guess there is that bond of friendship that makes us all want our friends to find what they are searching for. In contemplation , I guess  what brought me to Real Estate,  was the feeling gained by helping people in their search for a home, chase their dreams and solve their problems. The Real Estate Market is going to spin forward and I don’t want to predict when but I bet it is before they find out what is making crop circles. If mankind finds out aliens are making crop circles, I bet people quit buying and selling property,,,,,,, Na.. I guess there is nothing to worry about, I’ll bet you crop circles (2) are being made by unemployed English Bankers or are they?

George Kenner is a Broker Associate with Prudential California Realty, in La Mesa California. He can also be found at NumberOneInSanDiego.com or contacted at 619-723-5714. George Kenner is also the owner of Kalabash Marketing.

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Video Killed the Radio Star , Is it Killing our Open Houses Too?

openhouse2
It is according to Barry Cunningham of Real Estate Radio USA, but hmmm…let’s take a moment to ponder this notion.
 
Video Killed the Radio Staris a song written by Trevor Horn released in 1979 by the British pop band Buggles.  The lyrics reference a period of technological change in the 1960’s and more profoundly, the desire to remember the past and the disappointment that the children of the generation would not appreciate it.  Many of us remember this song as a defining moment in the history of music.  We remember the days of music before this song, and the days thereafter.  But why?
 
I’ve been selling real estate for ten years and can honestly say I have never sold the subject property from sitting an Open House.  Does that mean we, as Agents should get out there and take our weekends back?  I don’t know about you, but I can think of plenty of things to do on a lovely Saturday or Sunday afternoon than sit an Open House and hope that 1 of the 3-5 people that tour will fall in love with the home, write an offer and depending on the price range – hope that their offer will be the one accepted over the multiple others. 
 
Those Agents that are wholly committed to doing Open Houses – are they now part of a society of “Old School Realtors” that refuse to embrace new technology?  Is that harsh?  Has video really killed the Open House?  Or is it video and it’s many friends, i.e., virtual tours, flip videos, real estate shows, You Tube, etc.?
 
According to recent statistics of the National Association of Realtors, only 7 percent of Buyers visited Open Houses as a first step in their hunt.  If Open House statistics show that they don’t sell the property, what place do they have in a Realtor’s toolbox?  Actually, Open Houses sometimes provide the agent to market themselves and potentially find buyers for “other” properties.  In addition to appeasing the Seller who is usually under the belief that an Open House is a requirement from his/her Agent, how great is this really?  What are the alternatives?  Can’t a technologically savvy real estate agent find a myriad of other ways to market a home to a worldwide audience and find other buyers at the same time – all witin the 3-4 hours that it takes to host an Open House to maybe 5 people?
 
While many agents are slow to react and some aggressively resistant, the writing is clearly on the wall.  The change is coming.  While my opinion on this matter actually falls somewhere inbetween, I do know one thing for sure.  The Real Estate industry is under attack.  Not by any one person or entity, but rather a beast that has become unleashed.  “Technology”……like time; it waits for no one.
 
The Open House might be a dying concept, but I’m not quite ready to nail it’s coffin.  But then again, ask me my opinion next year! 

 

Cathy Palme
Prudential Ca. Realty
619-200-7518
www.MovingTheCity.com

August 9, 2009

Slience is Golden, But with Bank Closings?

GeorgeGrayBG1Silence creates and absence to the norm.  Where is the noise when there is a collision?  What would it be like if there was a car wreck and there was no noise.   Are we all deaf to the sound of a car crash because we have heard so many of them ?

At the end of this week (August 07, 2009)  the FDIC closed three more banks and I did not see a word of this in the Media.  The news is posted at the FDIC web site but doing Internet searches up until today no one seems to be interested.  Two of the Banks are in Flordia and one is in Oregon.

Personally I think the media is numb to importance of the continued failure of banks and is finding it to be a non story at this time.  Sometimes the story is the story not being told.  I am sure this will translate to property on the market for sale in the regions where the banks failed.  There is always an opportunity you just have to be looking for it.

If you want to see if there are any new bank owned properties that could be opportunities for you, please follow this link to my public records search page and search for ” Foreclosures”  in your area.  If you need any help with the search just drop me an e mail and I will be happy to help you.

August 8, 2009

Somewhere Over the RainBow, Are We Expecting to See the Wizard of OZ?

MVC-610F

I am sure Judy Garland had no idea that her name would be used in a Real Estate Blog some 50 years ago when she entertained us all in a now classic movie.  I was about 4 years old when I saw “The Wizard of Oz”  for the first time and I can still remember being scared by the flying monkeys.  I still don’t like those things.

The one scene where the Wizard is revealed behind the curtain, to be no more than a man, is now frequently used as a metafor aimed at our governement leaders.   Yesterday I read where the White House said that Unemployment would rise to Ten Percent.   Today I read  that President Obama is saying the worst is behind us.

Common Sense would dictate that a rise in unemployment is a bad thing, in fact it is worse by all common sense standards, so how can the worst be behind us?

Well,  here is what I believe to be true.  The “WIZARDS”  have no better idea about what is going to happen in the future than you do.  They are looking at the glass one day and seeing it half full and the next day they see it half empty.   So we have to make the decision full or empty.

It is for that reason your going to have to look at the facts yourself.   Let’s shares some facts before you go searching for a home.

Default rates are at about Four Percent that means ninety six percent are fine. Unemployment is at aproxmately 8.5 % Nationwide that means 90% of the Jobs have people working at them. House Prices are down in San Diego about 35% on average which makes this a buyers market.  Interest Rates are at historic lows and lenders are looking for your business.

 So it is not all doom and gloom.  It has even been rumored that our Wizards are finding it harder and harder to get face time on Television to tell us the same old thing.   Ok, the Nurse has spoken, now go search for a home,  don’t let a solid “Buyers Market” escape you.  Remember do yourself the biggest favor you can to save money, get preapproved for your purchase,  Sellers and their agents are making this a requirement.

If your wondering the picture of the rainbow was taken in Jamul, part of San Diego’s East County.  If the picture was taken  the other direction you could see the South California Coast line, but that will be another blog entry later.  Just remember there are always two ways of looking at things, I find it is best done with the facts.

August 7, 2009

Does Congressman Issa See A Mouse on the Cheese ?? Our San Diego Congressman wants to see the records for the Countrywide VIP LOAN PROGRAM

cheeseCongressman Darrell Issa from San Diego County is hot on the trail of Bank of America and Countrywide wanting to see the records of the  VIP Program that some Senators, Congressman and other public officials took advantage of during the hay day of the housing market.

 

According to the Wall Street Journal Congressman Issa is being blocked by a Congressman that was able to benefit from the VIP Program.  It seems unsual that someone who was involved in the VIP Program would be in a position to stop the public viewing of this information.

Congressman Issa seems to be very interested in true housing reform and looking for methods to change market conditions in San Diego County.  Our foreclosure rate is at all time highs and only the lower end of the market is showing any growth.  You can search public records for Notices of Default, Trustee Sale Dates and Foreclosures right HERE.

If you condemn or commend Congressman Issa is up to you but to me it looks like he is trying to do the research the public is interested in having and making the results  public.  From most logical standpoints to prevent the repeat of the past we must at a minimum understand what happened.   Here is a link to Congressman Issa’s web site so you may leave him a comment about your view of his actions.  Or better yet call his office in Vista, Ca.  at 760-599-5000

Soon The Losses will Be Real, 15 Billon Dollars is real money and its Fannie Mae’s 2 Quarter Loss

White cretan windmillThe losses at Fannie Mae are adding up. Along with the news of this multi billion dollar loss there is an announcement that the head of the Federal Housing Finance Agency will be stepping down at the end of the month. The good news it that the Fannie Mae did not request the full amount of the loss, they requested just in excess of $10 billion more from the Treasury.

Fannie Mae also announced that the rate of default is rising which would lead most accountants to believe the rate and size of future Treasury Department Support will not only be necessary but will increase.

The Associated Press announced that the Obama Adminstration is going to announce some plans for Fannie Mae’s Future sometime next year.

Click here to see access a news article supportive of the contents of this story.

If you would like to search public records for Trustee Sale Dates, Notices of Default or Bank owned property in San Diego, La Mesa, El Cajon or other San Diego County Communites just click HERE.

August 6, 2009

Deutsche Bank Describes Underwater Ratio

sail boats #2I can remember when “under water” meant that you were swimming but now it could mean that you owe more on your home than it is worth. Today Deutsche Bank predicted that almost half of the homes in the United States will notbe worth the value of the mortgage in 2011. In California the prediction is more dire, they say that in 2011 in parts of our fine State that the ratio underwater will be 90%.

What does this mean and is it even possible? Many people are countering this figure and prediction by the fact that home sales are up Nation Wide for the last 5 months. But in certain price ranges and zip codes there is no activity in the high end. In one El Cajon Zip in the $800,000.00 price range not one home has sold for a year.

This seems largely due to both interest in the high end homes and availability of loans in this price range. Don’t think it is only bad in El Cajon. This problem is National and is even impacting our leaders. Our Treasury Secretary, Tim Geithner can not sell his home and resorted to renting it. President Obama’s home has lost a few hundred thousand in value also.

Keeping your chin up and realizing we are all in the same boat is important. Don’t feel isolated everyone is impacted. It is encouraging to see that people are trying new things and are keeping a sence of humor as much as possible.

The number one rule of buying and selling anything is knowing the market. For that reason I provide to my clients both MLS and Public Records Search options. Real Estate professionals not only have to be able to point you to what is available in the Market but what is going to happen to future supply, if it is possible.

I will say this if prices go down any more the market will only continue to get better. Can you imange not wanting to live in San Diego if you could afford to. Our Community could easily lead the Nation out of this slump, we have it all including sun and surf.

August 5, 2009

Bank Losses Continue

Filed under: The Real Estate Economy — shortsalenurse @ 3:02 am
Tags: , , ,

Bank Losses Continue, GMAC POST 3.9 Billion Dollar 2nd Quarter loss.

For Buyers in the entry level market this is almost a non event. To the larger loan borrowers those in the JUMBO market this explains why that segment of the market is still tight.

GMAC who is now an independant bank after the break up and bankruptcy of General Motors announced today that they lost 3.9 BILLION dollars in the second quarter of this year. This includes both auto and home losses as GMAC owns multiple residential lending units.

The reason that this does not effect the entry level is that most entry level borrowers obtain loans backed by the Governement throught FHA or Fannie Mae or Freddie Mac who are not owned and operated at the instruction of the Government.

If it the hope of many in the Real Estate Market Place that soon the Governemet will come up with a plan to loan money to the larger purchaser “Jumbo Loans” or even those jumbo loans that are in default will have an almost impossible time finding a loan.

History has proven that you can not stop the flow of any part of the market and maintain balance. Hitting the wealthy home owner hurts us all. The market is relative if the top end of the market is hit so is the bottom end.

August 2, 2009

Is any of the Data We are Getting Correct

laughing teenage girl using computerIS ANY OF THE DATA WERE GETTING CORRECT

Recently the San Diego MLS was discovered to have been submitting bad data to the California Association of Realtor based upon ERROR. This story has had REALTORS accused of painting a picture of Sunshine on a Cloudy Night. The story has been covered in the Wall Street Journal, the Voice of San Diego and now the Blogs as we the professionals that pay for this error defend themselfs.

Well I am here to say, its my opinion we are still in a strong “Buyers Market” and my mystic has put the question to the crystal ball for when this is going to change and the responce was suprising. The crystal ball said look at the MLS Data. The Crystal Ball must not be reading the Internet.

I think the best way to get a veiw of the market is to look at the Data yourself. If you click on the picture in this post you will be directed to both and MLS and Pubic Records search system. There is nothing like seeing the market with your own two eyes.<

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