San Diego real estate blog

It was reported on January 22, 2008, that a home buyer is suing her agent because she believes she overpaid for her home.  The buyer believes her agent did not disclose that similar homes in the neighborhood were selling for less than what she paid.  At first blush, such a case seems frivolous to many because the ultimate decision to buy and the price to offer is ultimately the buyer’s decision.  Plus, no two homes are exactly alike.  Even if the homes are close to each other, they may vary in decorating upgrades and maintenance.  One home may face a green belt, another may be on a cul-de-sac and a third may have a panoramic view. All these factors can make for unique value variances within the same neighborhood.

Countrywide Financial Corporation foreclosure rates in January 2008 doubled!. The rates of its 9.02 million mortgages rose to 1.48% from the January 2007 rate of 0.77% . 

To me it looks like 2008 may mark the top in foreclosures and at the same time, build a base in San Diego California housing values. But, I do not foresee a big bounce-back in home values. This will take some years to put in a solid base in values. To view the full post, please visit, San Diego real estate blog

The Senate passed their version of an economic stimulus package today, Thursday, February 07, 2008. The Senate version expands rebate checks for seniors and disabled veterans and includes the same increases to the conforming loan limits for both GSE and FHA found in the House stimulus package. The House just passed the Senate version of the bill and it will now be sent to the White House. The President is expected to sign the legislation by the end of next week, ahead of the Congressional self-appointed deadline of February 15^th. The increase in the conforming loan limits will last through 2008, but C.A.R. and NAR continue to lobby for FHA and GSE reform, making these increases permanent.

The U.S. House of Representatives passed a stimulus package last week that raised the FHA and conforming loan limits to as high as $729,750 in high-cost areas. By increasing the loan limits, borrowers will see immediate relief with new liquidity in the mortgage market and the nation will see an additional 300,000 home sales. Research shows that an increase in the FHA limit would enable an additional 138,000 Americans to purchase homes, and 200,000 families to refinance their homes safely and affordably.

Increasing the FHA loan limits is critical to bolstering California’s housing market. Current law restricts FHA loans to levels well below the median home price in many areas of the country and caps loans in high cost states at $363,790. These limits are preventing many homebuyers from using FHA to purchase or refinance their loan. The proposed provision will increase FHA loan limits nationwide by raising the floor to $271,050 and the limit to 125% of local median home prices.

Additionally, raising Fannie Mae and Freddie Mac’s (GSEs) conforming loan limit will provide immediate relief to borrowers and alleviate downward pressure on current housing markets. For instance, increasing the GSE loan limit could result in more than 300,000 additional home sales and strengthen current home prices by 2-3%.