The San Diego Real Estate Blog

Best Links for San Diego Firestorm 2007

Friends and clients in the San Diego area: With all the fire related craziness that's been going on around here over the last three days it's nice to know there's help in some way for just about everyone. These are links for just about everything fire disaster related you can think of. This Encinitas Realtor was almost evacuated as I sat in my back yard and watched plumes of smoke rise from inside Rancho Santa Fe. We have a huge canyon just in back of us that, as my buddy the Carlsbad Fireman said is like a gun waiting to go off, if primed with the right Santa Anna winds would have gone up like a firecracker. Fortunately it didn't happen. If you have any other links you think are good don't hesitate to post a comment and I'll put it up for everyone to see. I also have a great connection to many rentals in the area that are being earmarked for those displaced by the fire.

Just a brief rundown of links: Realtor online disaster relief, air quality info, evacuation center list, Red Cross, FEMA disaster relief funds, IRS tax relief for disaster victims (Now that's incredible!), SBA disaster relief loans, HUD temporary housing, Assett Disaster Recovery help, CA Department of Insurance, Talking about fires with children, Current fire activity and evacuation zones (best site I've seen through all this)

Fire activity, special links, evacuation zones, video fire stories. This is the best site I've seen for anything to do with Firestorm 2007 in San Diego.  http://www.CBS8.com

C.A.R. Application for Disaster Relief Fund now available online

C.A.R. members impacted by the Southern California Wildfires may apply for assistance from the C.A.R. Disaster Relief Fund by accessing the application online at the link below. The C.A.R. Disaster Relief Fund will distribute grants of between $1,000 and $5,000 to REALTORS® and local association staff who have lost their homes or place of business as a result of the fires.

http://www.car.org/library/media/papers/pdf/ReliefFundApplication03.pdf

                                 
Information About Air Quality & Fire-Related Pollution
http://www.airquality.org/smokeimpact
The

California

Air Pollution Control Officer's Association (CAPCOA) has released a new Web page that provides information to the public about the health impacts of smoky air.

Evacuation Centers
http://www.car.org/index.php?id=MzI3NDI=

Disaster Assistance Information from the

California

Office of Emergency Services
http://www.oes.ca.gov/Operational/OESHome.nsf/LevelTwoWithNav?OpenForm&Key=Disaster+Assistance

Local American Red Cross Chapters
http://www.redcross.org/where/chapts.html#CA

Apply for FEMA Disaster Relief Funds
http://www.fema.gov/about/process/
Those affected by the

California

wildfires should apply for assistance by calling toll-free to (800) 621-FEMA (3362). Disaster victims may register by calling this number. They do not have to wait to go to a disaster assistance center. The number for speech and hearing impaired individuals is: 1-800-462-7585. Federal disaster assistance available for residents and businesses in the affected counties includes Temporary Housing Assistance, Disaster Loans and Other Needs Assistance Grants.


IRS Grants Tax Relief for Victims of

California

Wildfires
http://www.irs.gov/newsroom/article/0,,id=117499,00.html
The Internal Revenue Service has announced special tax relief for

Southern California

residents in the Presidential Disaster Area that was struck by wildfires beginning Oct. 21, 2003.

SBA (Small Business Administration) Disaster Loans
http://www.sba.gov/disaster_recov/loaninfo/property.html
"The Facts About...Disaster Assistance Loans for Homes & Personal Property"
Federal subsidized low-interest loans to repair or replace homes, personal property or businesses that sustained damage not covered by insurance. Call (800) 488-5323 to apply for relief.

Ginnie Mae Provides Forbearance and Buyout Authorization for
Loans in Areas Declared a Disaster by President Bush
http://www.ginniemae.gov/apm/apm%5Fpdf/03%2D22.pdf
Ginnie Mae encourages all single-family, manufactured housing, and multifamily Ginnie Mae issuers to provide forbearance to mortgagors in areas declared a disaster in

California

by President Bush.  Ginnie Mae is prepared to assist issuers holding mortgage loans in the affected areas in making their Ginnie Mae pass-through payments.

Mortgage Relief -- Freddie Mac
http://www.freddiemac.com/news/archives/servicing/2003/mtgrelief_102903.html
Families whose homes have been damaged or destroyed by the wildfires spreading across Southern California can seek mortgage relief designed to protect their credit ratings and financial interests in their homes, Freddie Mac announced Oct. 29.

Mortgage Relief -- Fannie Mae
http://www.fanniemae.com/newsreleases/2003/2818.jhtml?p=Media&s=News+Releases
Fannie Mae has mortgage relief provisions in place for Southern California homeowners facing hardships as a result of widespread damage caused by the wildfires raging in San Bernardino, Riverside, San Diego, Los Angeles, and Ventura counties in Southern California.

Mortgage Relief
HUD Mortgagee Letter 2001--07: "Special Program, Underwriting and Servicing Policies to Assist Victims of Presidentially Declared Major Disaster Areas-Single Family Loan Production and Servicing"
http://www.hudclips.org/sub_nonhud/cgi/nph-brs.cgi?d=MLET&s1=01-$%5Bno%5D&op1=AND&SECT1=TXTHLB&SECT5=MLET&u=./legis.cgi&p=1&r=24&f=G
In addition to information provided in the above HUD mortgagee letter, contact your lender to find out about any special assistance or loan-forgiveness programs that may be in place.


HUD Offers Temporary Housing & Foreclosure Protection to Displaced Families
In an effort to aid wildfire victims, HUD announced it will grant immediate foreclosure relief; provide temporary housing and shelter; offer Section 108 loan guarantee assistance; make available mortgage insurance; make available insurance for both mortgages and rehabilitation; and work with local governments to streamline re-allocating federal resources to disaster relief.
http://www.hud.gov/news/release.cfm?content=pr03-117.cfm

FHA Mortgage Insurance for Disaster Victims
http://www.hud.gov/progdesc/203h-dft.cfm
The Section 203(h) program allows the Federal Housing Administration (FHA) to insure mortgages made by qualified lenders to victims of a major disaster who have lost their homes and are in the process of rebuilding or buying another home.

Disaster Recovery: A Guide to Financial Issues
http://www.redcross.org/services/disaster/beprepared/FinRecovery/
Prepared by the American Red Cross

Information Asset Recovery After a Disaster
http://www.arma.org/news/Emergency.pdf
Tips to start recovery process for businesses that have suffered losses as a result of disaster, including plans to file damaged-property reports, recover key records, and other business properties. Excerpts from "Emergency Management for Records & Information Programs" by Virginia A. Jones & Kris E. Keyes.

Picking Up the Pieces After a Fire (American Red Cross) http://www.redcross.org/services/disaster/0,1082,0_569_,00.html
The American Red Cross has prepared this information to encourage you take precautions to help keep you safe and speed your recovery after a fire. It also offers ideas on what you can do to help make yourself and your home safer from fires in the future.

Insurance Related: Ca Dept of Insurance Wildfire Information
DOI can be contacted for general information and guidance about insurance claims by calling (800) 927-HELP (4357).
http://www.insurance.ca.gov

Animals Lost in Disaster
http://www.disastercenter.com/pets/animals.htm
Information for people who have lost pets, livestock, or other animals during a disaster.

Tips to Mitigate Risks and Losses Resulting from Fire
Prepared by the American Red Cross http://www.redcross.org/services/disaster/0,1082,0_584_,00.html

Spanish-language information: http://www.redcross.org/services/disaster/foreignmat/resfispn.html

Protecting Your Home From Wildland Fire
Tips from the National Interagency Fire Center
http://www.nifc.gov/preved/protecthome.html

Talking About Fires with Children
http://www.disastercenter.com/guide/fire.html
Information from the

California

Disaster

Center

to help prepare families for fire, including developing a family disaster plan.

Information from the American Red Cross about Disasters and…

Children: http://www.redcross.org/services/disaster/0,1082,0_602_,00.html

Seniors: http://www.redcross.org/services/disaster/0,1082,0_9_,00.html

Pets: http://www.redcross.org/services/disaster/0,1082,0_604_,00.html

Farm Animals: http://www.redcross.org/services/disaster/0,1082,0_11_,00.html

Financial Preparedness: http://www.redcross.org/services/disaster/0,1082,0_605_,00.html

Creating a Family Disaster Plan
http://www.disastercenter.com/guide/family.htm
Steps to take to create a family disaster plan to expedite voluntary and forced evacuations in the event of an emergency.

Buyers take your mark, go!

That fence has been getting pretty heavy. There's been lots of buyers on it for some time now and there's no reason in this Encinitas Realtor's opinion, not to think about buying a home now that the Federal Reserve has cut the interest rates by a half point. Pardon me for saying it but, thanks to the Fed for doing something! It's a move we'll watch observantly because of how it was done. This type of cut is more for helping credit card and home equity line of credit borrowers who's rate is tied to this type of cut. Mortgage interest rates are tied to the bond market. When it goes up rates go down.

I had an open house at my single story 1800sf super fixed up listing in South Encinitas on Sunday and no less than 18 sets of buyers showed up. It's a range price of $679,000 to $739,000 (yes we have ranges in San Diego). I've never been more slammed trying to answer questions and meet everyone. I kept asking and trying to figure out why so many people were there and after talking to many of them discovered they believed the market was about to turn. Hey, I knew something might happen if the Fed dropped rates 1/4 point but SURPRISE (it's your birthday!) have one of these 1/2 point cupcakes.  If anything's going to do it it's a lowering of interest rates and it will certainly help reduce inventory here in North County San Diego and help buyers get off the fence and start looking again.

We're a bit inventory deficient with single stories right now and I've got two of them (one with fabulous lagoon view in Aviara) that's about to come up and one in Encinitas with hand pounded copper sinks, new travertine, Hans Grohe faucets, new kitchen and baths. The sub-prime crisis has eliminated 1/3 of the buyer pool and it's been a tooth and nail battle with every listing fighting it out for market positioning. If the interest rates bring out the buyers and the inventory begins to decrease we might have some balance, something we've not had here in San Diego for quite some time.  I'll let you know what next weeks open houses bring. 

La Costa Canyon High School Gains Top Honors

La Costa Canyon High School was among 9 county schools named top state honors as a highly prized California Distinguished School this month. Jack O’Connell, the state's superintendent of public instruction, said in a press conference and visit recently, this signifies it as “best of the best”. To qualify, public schools must score well on standardized tests. The award also prizes other accomplishments that are not readily quantified – including exemplary counseling programs, a rich offering of elective classes, internship programs, teacher collaboration, support for young students and a well-rounded campus life.

Schools that choose to apply for the recognition undergo a tough application process. They must meet certain eligibility criteria, which includes specific levels of academic achievement. A lengthy application must be submitted that describes their curriculum, how they teach, what support they offer students and campus life. A team of educators not connected to the school then visits the school for an on-site evaluation.

Statewide, 76 middle schools and 95 high schools were selected – about 7 percent of the total number across the state. Elementary and secondary schools are recognized during alternate years. The award goes beyond the obvious recognition for academic achievements and educational environment helping improve property values for everyone in the district. Oh, and by the way, they have a killer surf and skateboard team too!

Dreaming in Pacific Beach San Diego

I’ve lived in San Diego for 6 years and I’m ashamed to say I get stuck in my own little pocket here in Encinitas and it’s tough to get out. Hey, not that it’s bad because actually its incredible here. It’s just that you don’t realize how vast the activites are that exist elsewhere, the variety of beaches (never thought it could get better than Encinitas!) and the diversity of the people...oh the incredible people, until you talk to people in other parts of the nation.

I held an open house this weekend in Pacific Beach and a guy from Upstate New York walked in off the street. He said he wanted to go to school at San Diego State University, which has an incredible Masters in Business Administration program and he wanted to live in “PB.” Pacific Beach for those who don’t know it is close to downtown (for those professionals who work there), is bordered by Mission Bay Park to the South (best water skiing!), the pacific ocean to the West and is totally surrounded by some of the most active night life, restaurants and activities one could ever imagine. Who needs a car here?? Beach bike, surfboard, skateboard, walking and jogging is the “transportation a la mode.”

The lifestyle and living opportunities are abundant. Imagine a life where you walk Tourmaline Street beach 3 blocks from your house in North West PB. You’re back in the condo or house by 8, hop in the shower, across the street for a cappuccino, then just a short jaunt to the down town office. Home in the afternoon and put the car away for the night and then you’re away for the night. Meet your buddies at the local pub, walk up the street for dinner and then stroll in the clean night ocean breezes as you head back to rest and look at the surf lit up from the bars on the beach. When you wake up on Saturday morning, make sure you go to the street fair and farmers markets.

Slap, slap….then I woke up from my day dream. Oh wait….not a dream; it was the guy from New York telling me about how he’d lived upstate for 25 years in tons of snow, ice and freezing weather. (I did the same in Syracuse, NY for 4 years at SU) But then there’s life at the beach!

Sentrilock Exchange Goes Horribly Wrong in San Diego

Lack of customer service, misplaced sinage, few check in stations and a lack of under staffing contributed to flaring tempers and 4 to 5 hour waits in line in 80 degree temperatures yesterday as the Sandicor MLS system for North County San Diego and Sentrilock exchanged thousands of old lock boxes for new ones.

Any company that's doing business with real estate agents knows we're all about customer service. That was not evident yesterday when I asked the helper at the head of the line, which took me 3 hours to get the front of, if they were going to issue "customer service feedback forms." Instead of saying we apologize she snickered and laughed.  Surprisingly the exchange at the head of the line was moving quickly and everyone was baffled why it took 3 to 3 1/2 hours to get to the front of one of two lengthy lines. The second took over an hour to get through and the training session took :20 minutes.

Hundreds of agents from the North County San Diego area were caught unprepared as the Sentrilock company under estimated the magnitude of the operation. Few people, including the agent next to me who had just had a carcinoma surgery, had sunscreen, water or food. This was just a complete lack of respect for people's time and Sentrilock and Sandicor did nothing to warn anyone the wait would be long nor did they attempt to explain or apologize. At one point, after standing in the shorter of 3 lines for half an hour, someone mentioned I was in the wrong line because they were arranged alphabetically. To investigate I walked to the front and sure enough there was a sign but it was placed at knee level and completely obscured by hundreds of agents waiting. I asked if the helpers could raise the sign where it could be read and :30 minutes later someone attempted to fix the problem but nothing was ultimately done.

Hundreds of people were heard canceling appointments and rearranging meetings since the bulk of the day was spent standing in line. To top things off, when I reached the final point in line, my lock box key hadn't been programmed so I've been invited to return to the fiasco this morning to wait in line and attempt to pick it up again. Tell me your story. I'm interested in knowing if you think this was necessary or avoidable. I pretty much am giving Sentrilock a big fat zero for their performance at the Del Mar Fairgrounds.

I

What Are Your Credit Resolutions?

by Debbi Nyberg, Mortgage Specialist, Mike Dunn & Associates

Many of us make New Year’s resolutions to improve various aspects of our lives.  Among the most popular ones: to eat better, exercise more and work at losing that extra weight which most of you have already started.  Another healthy resolution you may not have thought of, but should, is to protect your credit.  Regular monitoring your credit could help you detect fraudulent activity – activity that could be signs of identity theft.  Unfortunately it is quite prevalent these days and I see it often!

Find out where you stand by reviewing your credit report and no better time to do it then at the beginning of the New Year.  Your credit report contains information about your identity, what kind of credit accounts you have, and how you pay your bills.  There are three national credit reporting agencies.  Because not all lenders or creditors report their information to all three agencies/bureaus, your credit may vary from one bureau to another.  So, I recommend that you check all three for accuracy, make sure your financial records are accurate.  This year, make a resolution that can really make difference…get to know your financial situation before you start shopping possibly for your dream home.  Know your credit score…and how it affects your ability to borrow, your credit scores dictate the rates you can get from lenders and the cost of money you pay for that mortgage…the higher the scores, the lower the rate…period!

Personal information about you and your family is available from a number of sources.  It is in your best interest to monitor this information periodically to make sure it is accurate.  Here are a couple of websites that offer free credit reports that you can download and print your credit profile: www.annualcreditreport.com and www.freecreditreport.com

These are wonderful resources and a great way to get a “Report Card”, need assistance or have questions regarding your credit report findings; you can email me.

Unfortunately, it is not yet possible to outsmart identity thief’s and credit fraud entirely, but by managing your personal information carefully – and with a full understanding of it’s importance…you can substantially reduce the chances it will happen to you.

There’s no foolproof way to avoid having your identity stolen, but there are a number of precautions you can take to minimize your odds of being a victim.  Here are a few of them:

• Be careful about giving out personal information indiscriminately.
• Never give anyone your credit card number, social security number, or any other personal information for a purpose you do not understand…ask to use other types of identifiers when possible.
• Protect your mail/guard your trash.
• Don’t let a thief “dumpster dive” to get your personal information…tear or better yet, shred your charge receipts, bank statements, expired charge cards and pre-approved credit offers.  Promptly remove all mail from your mail box after it is delivered.  If you plan to go away, call the Post Office and request a vacation hold on your mail.
• Guard your credit cards.
• Minimize the information and the number of cards you carry in your wallet.  If you lose a card, contact the fraud division of the credit card company.  If you apply for a new card and it doesn’t arrive in a timely manner, contact the issuer.  Also, when you receive a new card, sign it immediately in permanent ink and activate it immediately too!
• Pay attention to billing cycles.
• Contact creditors immediately if your bills arrive late.  A missing bill could mean an identity thief has taken over your credit card account and changed your billing address.
• Safeguard personal information in your home.Especially if you are having service work done in your home, employ outside help, or have a roommate.
• Find out who has access to your information at work.
• Be sure to verify that records are kept in a secure location, and are accessible only to employees who have a legitimate reason to access it.
• Be smart about passwords and PINs.
• Memorize your passwords and personal identification numbers instead of carrying them with you.  Avoid using easily available information like your mother’s maiden name, your birth date, the last four digits of your SSN or your phone number, or a series of consecutive numbers.

Again, make a resolution to yourself that can really make a difference this New Year…wishing you all your financial goals in 2007 and beyond.

Linking Posts

The Buyers Are Back!

I've always liked open houses because they tend to reflect buyer's attitudes about the market. They can also be an indicator or what design concepts/floor plans/ideas are "in" and what's "out." I had two very succesful open houses over the holiday and I feel they're indicitive of a real estate market on the rebound.

On New Year's day I held open a $4.5m 8000sf 5bdr, 5.5 bath on .82 acres at The Preserve at Del Mar. It's situated high above Del Mar and Carmel Valley on the Del Mar Messa which commands a 360 degree view of the Los Panasquitos Preserve. The buyer traffic was continous with about 8 groups of people touring the home. For the high ended market that's a good attendance. The architect has combined the living room and family room together into a "great room" concept that many of the people loved. Personally, I've wondered for years why so many people have living rooms and never go in them. This gives you the ability to enjoy both together. There's also a 10 foot high pocket door that's about 25 feet long that opens to the Northern view. When the entire wall is open it totally brings the outside in and it's a great concept that's very unique. The home is called Casa de Vesta which means house of the hearth in Spanish. It's "one" with nature and the environment with it's finishes and design.

The other open house I did was the Saturday before Christmas. It's situated in Encinitas on 1.04 acres that's gently sloping and has a 180 degree ocean view on the top of prestigeous Crest Drive. The home is 1740 sf with 3+1 bedrooms and lots of room for expansion. It's listed at $1.5m. There's nothing else like it around. We had about 10 sets of people through that open house.

The buyers are returning to the market. There are many I'm working with right now and there are a number of agents in my office (of 75 agents) that have gotten busy as well.  Interest rates are moderate to low. The indication from the Fed is that rates may be lowered in the next few months to stimulate the housing and automobile sector. The forecast is for stability and a bottoming out of housing price reductions. We'll have to see what the "supply" does over the next 45 days but overall we're looking forward to a great 2007 here in San Diego in the housing market.

Buyer Activity Spikes Week of 12/26

The North County Coastal area experienced a sudden spike in activity the week of December 26^th when buyers suddenly “got religion.” In our office of 80 agents here in Encinitas, with constant networking going on, at least 8 deals showed up on the activity board. That’s a bigger peak in activity in a week than almost anyone has seen in the last quarter. 

I’ve been letting my buyers know for several months now that the market seems to be reaching a turning point and it appears it has “toughed out.” I’ve noticed on the MLS in the last two weeks that sellers are raising their prices (yes that’s raising) in anticipation of the market having started to swing in the seller’s direction.  I’d say the bold few who have chosen to raise prices are probably taking advantage of the decrease in market inventory over the last two months and in a defensive way anticipating more lowball offers from the buyers. They want a pad in case they’re forced to come down in price.  Offers based on future market decline have been the norm for buyers here for the last 6 to 8 months. All the offers that I’ve seen have been at the bottom of the range and with no regard for comps.

The foreclosures have already begun a steady rise and the lists I get from my title company seem to be increasing in size.  This, of course, is good news for buyers who are looking for a deal. One agent in my office has 6 foreclosure deals going right now and is anticipating at least that number in the first of the year.

So what’s up? I’m holding a listing open on Saturday from 1-4 on Crest Drive that’s 1.04 acres with a 180 degree ocean view listed for $1,560,000. This will be a super popular open house as Crest drive is one of the most highly sought after streets in all of Encinitas. When I get a reading on the buyers coming in I’ll post again. My feeling is that those who follow the market are ready to make their move and the first part of the year is going to be very active. If you’re looking to buy in 07 I’d say “get your ducks in a row” because when you find something you like it might be time to move.

Market Activity May Indicate Robust 2007

By Mickey Booz

November 27, 2006

What does the crystal ball hold for the 2007 San Diego real estate market? At the very least, hope for sellers and buyers. My daily contact with many agents, mortgage companies, escrow companies and MLS data seems to indicate trends toward a more active market in 2007 compared to what we saw in the latter ‘05 and all of ‘06. Let’s examine some of the indicators.

The Fed and its steady raising of the interest rates was probably one of the biggest factors in shoving down the price of homes. It stands to reason that when the interest rates increase it’s a warning sign for everyone. A higher interest rate means a buyer can afford less. A $500,000 home at 5.5% in 2005 became a $550,000 home when rates hit 6.5% in ‘06. Prices dropped as much as $100,000 in the $750,000 to $900,000 range in North County alone in 2006. One might have thought it was the best time ever to buy since prices were down and interest rates were at a historical low but interestingly buyers reacted indifferently. We had buyers on the fence completely uninterested in the market until the end of September this year.

Housing inventory was up at the beginning of 2006 and stayed up until August and September. When demand for housing is low and inventory is high, simply it’s a “buyer fest.” There was so much to choose from it was almost impossible for a listing to be noticed. New marketing trends emerged that amazed everyone. Limited service brokers and FSBO’s did and still are having a tough time selling. Without outside the box creative marketing and a sales person working constantly homes were sitting for 6 months. When they’re priced according to market conditions they sell. In this market there were many sellers who weren’t very motivated and they were living in the “8 months ago” mode with prices that didn’t make sense based on recent sales. Sellers who paid little or no attention to inventory spent (and are spending) months chasing the market.

Open house activity is picking up. I’m a big fan of open houses because it gives the listing agent the opportunity to meet buyers first hand and get feedback about a particular property. I usually hear similar comments from buyers when I ask “what other properties are you looking at in this price range?” I make it a point to see lots of homes so I know who the competition is. I feel the sellers should always know what the buyers are thinking or otherwise they have no market knowledge to fix things they can fix and adjust prices for things they can’t fix. Over the last 4 weeks (November) I’ve held several open houses where 15 to 20 sets of people per day came through. I was lucky to see 1 or 2 sets, twelve to sixteen months ago. The general consensus is buyer activity is picking up and many people are now working with active buyers that are pre-approved and ready to buy.

Mortgage people are a good indicator of what’s going on in the market. Mortgage broker Matt Hayes told me this morning he made a loan for a client at 5.99 percent for 30 years just this week. I’ve had a number of my mortgage vendors tell me activity is up and statistically loan volume is picking up speed. Rumor has it the Fed is going to hold steady on rates or possibly drop them when they meet in late January. If they drop I think we’ll see buyers start to ramp up. I had one buyer in an open house the other day tell me he’s ready to buy because he sold his home 3 years ago in anticipation of the market drop and he’s sick of waiting around for the market to finish adjusting. His feeling was "we’re close enough to the bottom of the trough" that prices and rates probably won’t go much lower if at all. I tend to agree.

The economy is the wild card here. Many people weren’t convinced the economy had much health until late ’06. Consumer confidence was low but gradually data began to show the economy was actually quite healthy.  Numbers showed a low jobless rate, the stock market rallied and bonds were relatively strong. Interest rates ticked downward the other day though when the market dropped which drives people to more secure investments that benefit the interest rates. Bonds for example are tied to interest rates and tend to drive them down. The change in political power in Washington may have bearing on the psyche of the real estate market as well.

Does it all add up to strong sales in 2007? We’ll see. No one has a crystal ball and no one can predict the economy, interest rates or how sellers are going to feel about selling at the beginning of the year. In San Diego, historically, January through April is a strong selling season because people anticipate moving in the summer and they’re preparing. Buyer activity certainly would indicate people are hopping off the fence and getting ready to make a move. Buyers are showing a level of comfort and more faith that the economy and interest rates are holding steady. Interest rates are lower than they’ve been in 12 months (5.99% for a 30 year fixed is good) and housing inventory has decreased. One important indicator, pending sales for the last several months, has shown a trend toward more people buying. That number is up. Since it’s a buyer’s market right now it’s the buyers that need to understand the conditions are positive. That educational process takes time, however.

As we move into 2007 I see many signs that the buyers are leaving the fence and coming onto the playing field. With any luck we’ll see San Diego’s housing market move into a new phase and my recommendation to all buyers and sellers is if you’re thinking about making a move, get prepared now and be ready to buy or sell when the time comes.