Mike Murphy

Carlsbad, CA –My husband and partner, Mike Murphy, was once a mortgage banker who dealt directly with Wall Street. He tracked the markets like a hawk, and almost crowed when ugly unemployment numbers were announced. He wasn’t happy that people were losing jobs; rather, he knew that interest rates would go down–and that makes real estate more affordable.

Though Mike is now devoted exclusively to San Diego real estate sales, he still realized the significance of last week’s jobs report, which is the latest data point to drag down rates for today’s home buyers and would-be refinancers.

The numbers reported by the government are ugly, with the national Unemployment Rate rising to 9.5 percent in June — which represents a 25-year high.

As the percentage of out-of-work Americans grows, households will have less disposable income to pump back into the economy. And San Diego is no exception. You see, consumer spending represents a whopping two thirds of our economy and the swelling ranks of unemployed are forcing markets to adjust expectations about when the U.S. and San Diego will reach full recovery.

Inflation is the mortal enemy of mortgage rates. So, the perceived absence of inflation can therefore be its friend.

With fewer working Americans, we can expect slower economic growth plus a smaller probability for inflation over the medium-term. This is why mortgage rates are lower of late, off by as much as a half-percent from the peak.

And that helps to make San Diego real estate more affordable–at least for those with jobs. –Roberta Murphy

San Diego Real Estate Tips and Traps

Carlsbad, CA–It’s that $8000 Federal Income Tax Credit for first time home buyers that is all the buzz in San Diego real estate circles.

We receive calls and inquiries almost daily from renters who are looking to make the leap to home ownership. It’s not just the idea of having a home of their own to decorate as they wish– it’s also the lure of that $8000 tax credit that looms so large.

Time is running out, though, with this federal tax benefit that is slated to expire November 30, 2009. so you may wish to consider these important factors that could determine whether you even qualify for the federal tax credit–and some hazards you may wish to avoid.

Tips:

• To qualify, you must purchase your home between Jan 1 and Nov 30, 2009. Single buyers must have an adjusted gross income of $75,000 or less, with $150,000 for married couples.

• You are a first time home buyer if you haven’t owned a home in the last three years. Great news for those who got out of the San Diego real estate market three or more years ago!

• This is a “refundable” tax credit. Even if you owe only $1,000 in federal taxes you will be entitled to the full eligible tax credit.

Traps:

• Buyers receiving the credit will have to own the home (and presumably live in it) for a full 3 years, or the credit must be returned to the government. Exceptions may be made in certain cases, such as death or divorce. (And what about San Diego military relocation?)

• Beware of trying to negotiate a short or pre-foreclosure sale with hopes of closing prior to Nov 30, 2009. Many of these transactions are taking 3 to 6 months or more to process–and some end up going to foreclosure before closing can take place. Better to seek a well-priced foreclosure or motivated seller if you are seeking a certain bargain and want to be sure of closing by that November deadline.
• Real Estate Auctions? Beware these, as well. You could be bidding on a property with undisclosed and fatal flaws that may not appraise–especially if you overpay in bidding frenzy. Better to carefully negotiate and inspect the home you are buying.

This morning CNN offer 5 tips for selling your home quickly–starting with aggressive pricing at 10 to 15 percent below recent comparable sales–possibly excluding or discounting foreclosure and short sales, unless they dominate your market. That may or may not apply in all San Diego neighborhoods, and warrants individual discussion.

Still, CNN and we offer some selling tips that will work in all markets–but are particularly important in these more challenging economic times:

• Focus on first impressions. Spruce up the yard, paint your front door, plant flowers, spread mulch,  powerwash the exterior of your home. We also suggest a new front door mat, clean windows until they sparkle, add a new porch light if needed and make sure gardens, sidewalks and driveways are crisply edged.
• CNN suggests treating first time home buyers as friends–which they are.  We know they have moved into the San Diego real estate market in force, thanks to the federal tax credit, reduced home pricing, low interest rates and inventory levels that are starting to shrink–at least at the lower price points.
• An online presence is critical and it’s necessary for you or your agent to promote your home not only on traditional real estate venues, but also on Facebook, Twitter and other social networking sites. That’s where the Gen-Y and Gen-X crowd congregates.
• The advantage you have as a “normal” seller is that you don’t have to stretch the transaction out for months waiting for bank and investor approval. You can close quickly and at a certain price. More and more, San Diego home buyers (and especially first time home buyers seeking the $8000 tax credit that expires this year) are looking for homes with certain closure.
• Go ahead and plan to sell and close your home quickly. That means thinning out closets right away, boxing up family photos and treasures, and lessening the load and appearance of “things” and “stuff” in your home.  This paring down will help your home look more spacious–and will be a Godsend come moving day. When it comes to staging your San Diego home for sale, less is truly more.
• Finally, don’t try to mask odors with candles or sprays.  Nothing smells better than a home that is truly clean. Shampoo carpets, wash or paint walls, clear and clean kitchen surfaces and make sure bathrooms are spotless. Open windows and air out your home. And try to avoid, at least while your home in on the market, cooking smelly foods.–by Roberta Murphy

San Diego Harbor

Carlsbad, CA–The San Diego real estate market has taken a beating the last few years, but recent stats show that home sales and prices are picking up and leveling out.  What many have forgotten during this downturn is that San Diego remains one of the most desirable places to live on this planet.

Are San Diego homes still expensive? Yes. But a recent US News and World Report story that looks at 10 Pricey Cities That Pay Off includes not only San Diego, but five other California cities as well: San Francisco, Santa Barbara, Salinas, San Luis Obispo and Los Angeles. Other cities on the list include Boston, New York, Naples, FLA and Honolulu.

Author Mathew Bandyk explains that these cities are all high priced for selected reasons: Fine weather and coastal location top the list. Also critical are cultural and recreational opportunities, trade productivity, universities that produce an educated workforce–and proximity to natural resources.

San Diego was ranked seventh on the list, with trade productivity that compares to Philadelphia. San Diego arguably has the finest weather of all, but also boasts three universities: University of California San Diego, San Diego State University and the private University of San Diego. The metro area also has a number of community colleges that also contribute to San Diego’s highly-trained work force. These students and grads, in turn, help support San Diego arts and very walkable urban neighborhoods.

Anecdotally and in our real estate practice, we are seeing more and more potential employers targeting San Diego as a great place to live–and conduct business.

Why?

It’s the climate, of course–and the beaches, and the city, the educated work force,  proximity to desert (golf) and mountains (ski and boarding) and more recently, homes in San Diego that are more affordable than most other cities on the list. It’s a combination that’s hard to beat. –Roberta Murphy

San Diego Fireworks

Carlsbad, CA–The economy may be in the tank, but that won’t stop San Diego from celebrating the 4th of July, 2009 in grand fashion. Chula Vista has again put fireworks on hold because of city budget constraints, but the rest of San Diego (thanks in great part to civic fund raising) has found a way to light up the skies with brilliant displays this Independence Day.

What is the schedule for San Diego fireworks this year? Here’s our annual and updated list:

SAN DIEGO

Coronado: Glorietta Bay and Silver Strand
July 4, 9 p.m. Day-long festivities with a parade at 10 a.m. Also watch half-marathon and rough water swim!
(619) 437-8788.

La Jolla Cove
July 4, 9 p.m. Watch the fireworks from Scripps Park, La Jolla Cove, and La Jolla Shores Beach.
(858) 454-1444

Mira Mesa Recreation Center
July 4, 9 p.m. Food, rides, games and entertainment in Mira Mesa Community Park during the day.
(858) 538-8122.

Mission Bay Yacht Club
July 4, 9 p.m. 1251 Carmel Place, West Mission Bay. Watch boat parade, too!
(858) 488-0501.

Ocean Beach Pier
July 4, 9 p.m. Ocean Blvd and Newport Avenue.
(619) 226-8613.

Mission Bay: Paradise Point Resort
July 3 at 9 p.m. with all-you-can-eat Kansas style BBQ at 6 pm
(858) 274-4630.

USS Midway: July 4: Watch Big Bay Boom fireworks from the deck of the USS Midway. $12 Adults, $7 children. Deck opens at 6 p.m.

San Diego Big Bay
July 4, 9 p.m.
(858) 751-5755.

Mission Bay: Sea World
July 3 and 4, 9:30 p.m.
(800) 25-SHAMU.

EAST COUNTY

Julian:
July 4. SR 78 and SR 79: The party starts at 10:00 am, with parade at noon. No fireworks, though, because of East County fire hazards.

Lake Murray
July 4. Music Fest all afternoon, with fireworks starting at 9:15

Ramona
July 4. Olive Pierce Middle School on Hanson Lane, Celebratins start at 5 p.m. and fireworks at 9.

Spring Valley Park
July 4, 9 p.m.
(619) 479-1832

NORTH COUNTY

Aviara Four Seasons: After dark fireworks. Sit on La Costa or Aviara hillsides and enjoy the show from both resorts

San Marcos: Bradley Park
July 4, 9 p.m. Enjoy food and music all day long.
(760) 744-9000.

Vista: Brengle Terrace Park
July 4, 9 p.m. Festivities all day long. Bring picnic basket!
(760) 726-1340, ext. 1574.

Camp Pendleton: Del Mar Beach
July 4, 9 p.m. All day activities including music, food and games.
(760) 725-2313.

Escondido: Grape Day Park
July 4, 9 p.m. Afternoon festivities, including game and food booths, music, and more.
(760) 745-1159.

Carlsbad: Legoland
July 4, 8:30 p.m. included with admission
(760) 918-LEGO.

La Costa Resort and Spa
July 4, after dark with member food and entertainment prior. Watch for free from La Costa hillsides!
760-438-911

Oceanside Pier
July 4, 9 p.m. Part of the O’Fest All-Day Carnival. Park early and party/picnic all day!
(760) 967-2005.

Poway
July 4, 9 p.m. Old Poway Park, 14134 Midland Road. Free music and entertainment 10 to 4 p.m. Face painting, arts & crafts and patriotic displays at Heritage Museum. Carnival-type food, too. Cotton candy, anyone?

Ramona: Olive Pierce Middle School
July 4, 9 p.m. Grounds open at 5 p.m. for community picnic including food booths and games.
(760) 789-1311.

Rancho Bernardo
July 4, 9 p.m. in Webb Park, 11000 Avena Place. Pancake breakfast with parade that follows at 3:30.
(619) 889-8505.

Del Mar Fairgrounds
July 4, 9 p.m. included with admission. Navy Bank Southwest will perform at 7:30 p.m. on Heinekin Grandstand Stage and Smokey Robinson at 9:30 p.m.

(858) 755-1161.

Valley Center Community Center
Returns this year! Bring picnic or buy food from Lions Club. Live music and fireworks at 9. Open at 6 p.m. off Lilac Road. Free.
(760) 670-7062.

SOUTH BAY

Chula Vista: Bayside Park: Canceled again because of budget constraints.

National City: Kimball Park
July 4, 9 p.m. Carnival rides, games and yummy food booths.
(619) 336-4290.

by Roberta Murphy

Oceanside Terrace

On Sunday, July 19 individual units in the Oceanside Terraces condo development are slated to go to auction at the Carlsbad Sheraton Hotel. Eve Sieminski, Scott, Mike and others have spent the last 15 months representing the builder and this project and know it inside and out. We know the best units–and also have a very good idea where successful bidding might start. Additionally, we are intimately familiar with other developments that are slated for the parking lots in front of Oceanside Terraces.

For example, how about a 1947 square foot corner unit that will NOT lose its current ocean view–and that just might be had for a minimum bid of $295,000??? This represents a 61 percent price reduction from the original asking price of $759,900! (We only wish we could have had these prices–and financing–when we were selling these residences).

We met earlier this week, and have decided to offer a $1000 Costco gift card to buyers whom we (Eve, Mike, Scott or me) officially represent and who close on one of these condos with us post-auction. To qualify for the gift card, one of us at San Diego Previews must accompany you on your first visit, officially register you with the auction company, appear with you at the auction and accompany you to the closing table. Additionally, we understand the builder may be offering $1500 toward your closing costs.

It is also important that you be pre-approved with one of the builder’s lenders. Please give one of us a call to make an appointment for the registration process and to preview available units. If you wish to see prior minimum pricing, you will also need to sign a buyer-broker registration agreement.

If we both jump through the required hurdles, you are represented by San Diego Previews– and you are the successful auction bidder, at close of escrow you will also receive a $1000 Costco gift card compliments of San Diego Previews.

For additional information, call:

Eve Sieminski GRI 760-518-2264 (eve@sandiegopreviews.com)

Scott Murphy GRI 760-613-6190 (scott@sandiegoprviews.com)

Mike Murphy 760-402-9102 (mike@sandiegopreviews.com)

Roberta Murphy 760-402-9101 (roberta@sandiegopreviews.com)

For additional information about Oceanside Terraces:

Oceanside Terraces: Oceanside Urban Luxury

And according the the San Diego Union Tribune, a representative from Thomas Enterprises consulted with Chargers spokesman Mark Fabiani regarding this proposal around six weeks ago. (Our ears are still close to the ground). Two years ago, the Chargers nixed the idea of building the new stadium at the Oceanside Center City Golf Course.

Also seriously considered for awhile was the site of Chula Vista’s huge power plant, but that prospect appears to have cooled–as have plans to build near the existing Qualcomm Stadium.

I think Oceanside’s old drive-in site would make an excellent location for a new Charger’s Stadium–far better than anything in Chula Vista. It is close to Interstate 5 and with that North County location, would attract Chargers fans and money from Orange, Los Angeles and Riverside Counties. It is also not far from the Oceanside Train Station, and would be fairly easy to run shuttles from station to stadium.

This move to Oceanside would keep the Chargers in the San Diego area,  keep $ millions in our local economies, and would provide employment for countless workers both pre-and post-construction.  It may also be one of our best opportunities to keep the Chargers on home soil.

San Diego Sunrise

Carlsbad, Ca–Things are starting to brighten for the San Diego real estate market.

Home buying in San Diego may have dipped 4 percent in May, but that is likely due to the dwindling number of foreclosures available in San Diego County. And according to MDA Dataquick, the median price of homes in San Diego has increased by $5,000 since April’s report. The median home price here now stands at $295,000, substantially above the recent $280,000 low in January, 2009.

Some speculate that the rise in San Diego County’s median home prices might simply reflect the the diminished number of low-priced foreclosure sales–and inventory. With 27.2 percent fewer listings than a year ago, home buying pressure is increasing.  Also spurring this buying activity is the fear of rising mortgage rates and the $8000 tax credit for first time home buyers that is set to expire later this year.

Anecdotally, we are also seeing an uptick in the sale of higher-end properties, which could also contributes to the rosier statistics.  For example, we recently listed and sold a $2.25 million La Jolla condo (464 Prospect) in four days–for cash and with a 15-day closing (and have other high end buyers in the wings).

It appears that traffic at all San Diego coastal listings has increased exponentially in the last couple of months–and sales are also picking up.

This doesn’t mean that further price declines won’t be occurring at San Diego’s luxury real estate market, but prices do seem to be leveling out within our balmy coastal band.–Roberta Murphy

Carlsbad, CA–These are tough economic times, even in sunny San Diego. With unemployment running at 9 percent here, many fear not only the loss of their jobs, but the loss of their San Diego homes as well.

So what’s a homeowner to do when facing unemployment?

Besides filing for unemployment, checking 401(k) balances,  securing health insurance coverage and polishing the resume and LinkedIn profile, the newly-unemployed homeowner should also assess outstanding debt–including the mortgage. This is not the time to slack off on payments; rather, every step should be taken to keep payments current.  Don’t bury your head in the sand. Instead:

1. Pick up the phone and call your credit and bank card companies. Advise them of your situation and try to negotiate for a lower interest rate as well as lower payments.  Increasingly, these creditors are more willing to negotiate terms.

2. If you have a mortgage on your San Diego real estate, call your mortgage lender(s) and inquire about mortgage loan modification. You may be able to not only reduce your interest rate, but possibly reduce the principal balance on your mortgage as well. Be persistent–and patient, as you sit on hold for what seems like an eternity. And before even thinking of forking over money to a loan modification company, visit HomeFreeUSA where you can receive mortgage loan modification assistance for free.

3. If you think you may need to leave the area for employment elsewhere, consider calling a reputable San Diego Realtor immediately. He or she will be able to advise how to sell your home quickly and at the highest price–but will be able to market it to the broadest buying market possible.

When or if unemployment hits, fear will be the worst enemy, More than ever, this will be the time to be alert to alternative career possibilities, assertive in seeking financial solutions and aware of the life’s potential ahead.

2009 Fiesta Del Sol

Solana Beach, CA–Come join us for the 30th annual Fiesta Del Sol event in Solana Beach on June 6th and 7th. Over 50,000 people are expected to attend–and there are a lot of reasons why. Even I will leave behind–at least for a few hours–my obligations as a San Diego real estate agent.

The arts and craft booths are totally sold out, and as usual, you can expect to find some crafty buys ranging from unique jewelry to garden whirligigs. Additionally there will be some great music and bands such as Common Sense  and West Indian Girl who are playing on Saturday, with Donovan Frankenreiter headlines on Sunday.