The Standard & Poor’s/Case-Shiller home price index released Tuesday inched up 0.2 percent to a seasonally adjusted reading of 145.49. The index was off 5.3 percent from November last year, nearly matching analyst’s estimates that it would fall by 5.1 percent.

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2. Don’t buy Carlsbad real estate unless you can afford to stay put.
Although property values have been on the upswing in La Costa and Carlsbad, there are still concerns about a coming wave of foreclosures.  We may have seen Carlsbad property values at their bottom, but that is still unknown.  Don’t buy Carlsbad real estate hoping to flip it quickly at a profit.  Now isn’t the time to take that kind of risk!

3.  Only buy what you can really afford
Most of our recent real estate problems have come from families buying homes they can’t afford.  The average family can afford a home that is 2 1/2 to three times their annual salary.  But take into consideration, your other expenses and debts before you commit to a monthly mortgage payment.

If you have any Carlsbad real estate questions, please contact us.  A home is one of the biggest purchases you may ever make.  Please be informed and make the best decision possible!

1. The tax credit expires on December 1st, 2009.  That means all real estate purchases have to be CLOSED before then.  You can not still be in escrow.

2. If you were hoping to use the tax credit – you can no longer buy a short sale.  Most short sales take about six months to complete.  There is no longer time to complete the short sale process and close escrow before November 30th.

3.  Because of the large amount of buyers, there are often bidding wars on properties under $400,000.  If this is your price range, be prepared to make full price offers, and often be forced to counter above asking price.

4.  Financing is still tight - and slow!  Most “easy” mortgages are taking around 45-60 days to fund. 

If you are looking to take advantage of this First Time Buyer Credit – please consider all these facts above.  In order to close by November 30th, you probably need to be in a contract by September 30th.  You need to be prepared to make strong offers, and you need to work with your professional team of real estate and mortgage consultants to keep the process moving quickly.

If you have any questions about Carlsbad, La Costa, Encinitas, Del Mar, Oceanside, or San Marcos real estate, please call The Mewborn Team.  We specialize in coastal luxury San Diego real estate.  We are happy to serve as your personal real estate advocate!

There are many possible reasons for smaller homes:
1. Aging boomers: As people are living longer, more Carlsbad couples are selling the big houses in favor of a smaller, single story home with less yard (and maintenance). We are finding that La Costa and Carlsbad single story homes are often on the market for a fraction of the time as a similar square footage two-story. The demand for these homes are increasing dramatically! Also as baby boomers are becoming empty nesters, many are choosing to trade in their big home for an RV or more vacations.

2. Affordability – We often find that Carlsbad real estate buyers stretch to buy the biggest, best house they can afford. In times of economic distress – layoffs, declining property values, decreasing wages, people just can’t afford the big house any more. Factor in increases in San Diego energy and water costs, more homeowners are realizing that maybe they need to revisit their monthly housing expenses.

3. Tight credit markets – Any loan above $417k is still a jumbo loan. Even though homes within the expanded limits are often called high balance conforming loans – these and other jumbo mortgages are harder (and more expensive) to get. As Carlsbad interest rates rise, home buyers will be able to afford less and less.

If you have any questions Carlsbad, Oceanside, Encinitas, and other north county coastal San Diego real estate or mortgage topics, please contact us. We are always happy to answer your questions.

Carlsbad, CA – A fear of overpaying for Carlsbad, Oceanside, or San Elijo real estate is common these days, especially  when prices continue to be unstable.

If you are a San Diego home buyer and are frozen because you are unsure what to do next – and are concerned you may pay too much, here are some items to consider:

1. Waiting for the right time can be expensive. Some Carlsbad real estate buyers would have more equity today, despite falling prices, if they had bought when they first started looking, instead of continuing to pay rent.

2. Financing is not guaranteed. Some people who were highly qualified last year can’t find financing this year because the credit market has tightened or their personal financial situation now makes them an undesirable borrower.

3. Interest rates have no where to go but up. If prices decline by another 10 percent, but interest rates increase by 1 percentage point, the monthly payment will be the same.

Can we guarantee that Carlsbad real estate prices are at the bottom?  No!  Can we say confidently that now is a great time to buy real estate in Carlsbad, La Costa, Oceanside, Encinitas, Vista, or San Marcos – YES!  In most of these areas, prices are at near 2001 levels.  Interest rates are at near all time lows!  This Carlsbad real estate opportunity is unprecedented!  Don’t miss it!

Source: Based on an article in The Wall Street Journal, Douglas Heddings (07/27/2009)

What is the first time buyer tax credit?
It is a tax refund for 10% the purchase price of a primary residence (up to $8K). If you do not use the entire $8,000 on your 2009 tax return , the remainder will be refunded directly to you.

Who is eligible to receive the credit?
First-time home buyers and those who have not owned a principal residence in the last three years prior to purchase.

Are there income limits?
Yes. The full amount is given to:

Individuals with adjusted gross income less than $75k
Married filing jointly with adjusted gross income less than $150K per year

There is a phase out between:
$75K and $95K for individuals
$150K and $170K for joint filers.

Because a normal real estate transaction takes between 40 and 60 days to close, TIME IS RUNNING OUT! A short sale may already be too late.  If you want to discuss this further, contact us today.

We have been telling clients over the past couple of months that we thought the market had stabilized.  In La Costa and in particular La Costa Oaks - most of the lowest sales prices (La Costa comparables) had been BEFORE January 2009. 

We have also been telling clients that you won’t know the bottom of the Carlsbad real estate market, until you’re already past it.  It seems that may be the case.  Dataquick has reported that the Median Home Price for San Diego real estate is up for the third month in a row. 

But don’t take our word for it – For the San Diego Union Tribune real estate article – click – San Diego Real Estate Prices.

• Jon and Kate Gosselin, co-stars of the popular TLC show “Jon & Kate Plus 8,” have been trying for three months to sell their former home in Elizabethtown, Pa.
• Rapper 50 Cent has given up selling his mansion in Farmington, Conn., after dropping the price from $18.5 million to $14 million.
• Richard Gere and wife Carey Lowell have dropped the price on their home in New York’s Hamptons from $8.8 million to $7.2 million.
• Model Elle Macpherson cut the price of her London Victorian from $9.5 million to $8.5 million, and has since dropped it to $7.5 million.
• Star of “Real Housewives of Orange County” on BRAVO TV Jeana Keough, also a real estate practitioner, is facing foreclosure.

Source: Chicago Tribune, Mary Umberger (06/21/2009)

Before you apply for your next Carlsbad mortgage, consider this advice:

1. Ask for the good faith estimate early.  Ask the mortgage representative to fill it out completely – with the estimated Carlsbad interest rates and closing costs.

2. Ask what you need to do to “lock your rate” and how long the rate lock will last.  Lenders will charge a fee to cover the risk of a change in interest rates between the time you start your transaction and the time the transaction closes.  Normally the longer you want to lock the rate, the higher the potential fees.

3. Ask your Realtor or Financial Advisor to look over your Good Faith Estimate.  There are SO many moving parts in your real estate transaction.  Ask your professionals to check each other.  Checks and balances only protect you – the consumer.

If you have any questions about Carlsbad, La Costa, San Elijo, or other north county coastal real estate or mortgages, please contact us.  We are always happy to help.