Even though sales volume for 2010 will be just about the same sales volume we had in 2000, we see increases in the home sales under $2,000,000 as move-up buyers take advantage of lower interest rates and prices that have moved back to 2002 values. The time to buy in the $2,000,000 price range is now!

It Doesn't Hurt To Have A New School Built, Either.

I know there is a lot being written and said about the ongoing review by 50 state attorney generals regarding the foreclosure procedures of some major lenders in the United States. I wanted to weigh in on this issue.

I first want to explain that losing a home is a horrible, horrible thing and we all feel terribly for those who can no longer afford their homes. Whether it occurred due to lax lending standards, unforeseen hikes in adjustable mortgage rates, inability to refinance, job loss or some other catastrophic situation, our hearts go out to those who have been foreclosed upon.

With that said, I do believe the lending institutions have a huge responsibility to follow all applicable federal and state laws throughout the foreclosure process. Bank of America, GMAC Mortgage and others have halted foreclosure activity – including the sales of their bank-owned properties – to ensure that their processes are indeed being handled properly and according to the law. By most accounts those who are in the foreclosure process remain unable to afford their home and will ultimately and unfortunately still be foreclosed upon. From what we have seen, these large lenders expect their reviews to take no longer than a few weeks.

I do hope that is the case. As I have said in just about every interview I have done, we need to flush these foreclosed properties through the system as quickly as possible for the benefit of the housing market and the economy as a whole. The good news is that because these foreclosed homes usually sell for about 25-to-30 percent lower than “traditional” homes according to the National Association of Realtors, we have seen first-time homebuyers and investors purchase them very quickly. This will likely continue once the freeze is ended. But remember that each time one of these homes is sold, it obviously lowers the average sales price of homes in the area. This average does have an impact on all re-sales where foreclosed properties make up a sizeable amount of the homes available for sale. These communities will likely not see their average sales price rise until the glut of foreclosed homes are absorbed.

While the states must take action to ensure that foreclosures are being handled properly, I believe a prompt resolution is of the utmost importance for all involved – and especially for the economy.

by Jim Gillespie

The population from 2000 to 2010 was static at 23,000 homes in Encinitas.
The population was static at about 55,000.
The percentage of the total inventory sold ranged from 2% to 4% per year.
Prices peak in 2007 and then fall 19% to 2010. Sales at the peak price is 548
homes and dropped only 10% to 2010.
Note that even though price moved up from 2009 to 2010 the buyers cut
better deals by getting more house for the same price.

Also, on the issue of the effect the foreclosure moratorium will have on sale in our area, I think
we will see no price increases. We had about 40% of our sales involved with some form of distress.
Will we see more short sales, yes. Many that were tabled due to lender incomprehensibility will be ressurecdted.
Will they find a new treatment and turn into sales?

Could this be a great election ploy to add the “chicken to every pot”?
Actually, this will be called “dipping the chicken in your pot, but taking it away after Christmas”.

The number of sales number is really odd but is repeated across many other areas as well—hard to understand why sales volume is so low for such an extended period unless it is just part of the shadow inventory banks are sitting on—of which there is not enough to have this effect.
That said, nationally new home sales levels are annualizing at 250K right now vs. average of 700K which is lowest level since 1963—granted this is new homes, but the number is similar for existing homes as well.

Deedee Kirsch found a buyer for gorgeous 269 Pacific Ave last week, which sold for $4.8 million. This house has 4 bedrooms and 4 baths, contemporary styling, a fire pit and all hardwood floor. One of the most unique features of this estate is the window system, which allows the resident to control the light through shifting glass panels via a remote. Check out these pics below!