2011 San Diego California Real Estate Market

The holiday bells are beginning to quiet down and the new year has arrived. Looking through the San Diego real estate headlines I’m seeing a rehash of some of the past headlines.

Do these sound familiar to you:
* Act now, or you may be paying thousands more in a few months.
* What a great time to buy with low interest rates and a good supply of homes for sale,
* Solid signs of a firming market,
* With interest rates near all-time lows, buying now is a no-brainer,
* Get in now, before the huge pent-up demand for homes hits,

We have heard these same phrases since 2005. The major difference was that in 2005 and 2006 many of the Gurus were adding phrases:
* It’s only a normal pull-back,
* It’s known as a ‘pause to refresh’,
* This is a once in a lifetime buying opportunity before the market resumes it’s double digit yearly appreciation.

Amazingly in San Diego, California, is the local media talking-heads still go back to the same industry spokespeople to get their 60 second optimistic new year outlook for the 6:00PM news.

Naturally, I’d like to join this optimistic, self-promoting crowd, but sorry, I have to tell it like I see it.

After the $ 8,000, Federal and California home buyer credits expired, the local San Diego real estate market entered into a double-dip continued erosion of home values.

After the homebuyer credits concluded, San Diego home values saw modest price appreciation. Now even this modest appreciation has disappeared. Even more troubling is that the resale home sales volume has been dropping at double digit rates for the last few months. Just from April to May the western states sales dropped a reported 20.9%. Huge double-digit declines in home sales are a major red flag that cannot be ignored.

When will the government learn that you cannot artificially create lasting demand? (Statistics show the vast majority of government housing programs, costing billions, are outright failures and have only prolonged our malaise.) I believe the best thing the government can do is to stay out of the housing market and let the open market clean up the mess.

Think about this: Bernanke initially spent almost $ 2 trillion to drive long-term interest rates down.

The $ 600 billion QE2 has no effect to date. Actually, interest rates have moved up substantially. There are a few months left, but I am sure Bernanke will use the “it would have been much worse” argument and declare success. The reality is that there will be no QE3, not with Ron Paul now as the watchdog of the Fed.

Our aging population, combined with a decreased standard of living can’t equate to housing starts comparable to prior generations. I think our government’s relentless destruction of the middle class is making this different from prior real estate cycles.

Foreclosure moratoriums are beginning to expire. I believe the banks will push to clean up their portfolios through increased foreclosures.

Except for cash buyers, home pricing is derived from the affordability of the monthly payment. Should interest rates and taxes go up (a good bet), the purchase price will have to come down to establish a market.

Construction labor is already about as cheap as you can get it and inflation for materials is already present. This spells very bad news for homebuilders.

As far as pent-up buyer demand goes, the gurus again have it backwards. It’s not buyer pent-up demand, but seller pent-up demand to unload their homes.

The depth and longevity of this San Diego housing value depression has been imbedded into the consciousness of the usual first wave of home buyers in their late 20’s and early 30’s. The high cost of living in San Diego has been further stressed with continued multiple raises in utilities, increased state taxes/fees, higher education costs and $ 3.00+ per gallon gas prices. This all equates to over-priced homes in the current world of qualifying for a home mortgage.

I just believe there are major problems with our economy at play that we have never seen before and that will have a deciding call on what happens with housing. I see demand based on finance rather than population at this point.

During the mid 2000’s, almost the entire mortgage universe had been refinanced. This included many baby boomers that were in the last half of the 30-year mortgage they took out when they purchased their home. Some of this was hopefully to pay down other expenses and not to maintain their fantasy of the luxury lifestyle. The refinancing bubble that resulted from the irresponsible actions of Greenspan reset the 30-year mortgage clock. All borrowers looked at, was how the refinance lowered their house payment by $ X per month, without giving a second thought to the fact that they have also extended the term to a new 30-year loan.

Another round of refinancing occurred when Bernanke pushed rates down to the 4% range. The only borrowers left who have not refinanced are those with no equity and/or are facing foreclosure.

In either case, now many Boomers who are reaching the traditional retirement age, find themselves strapped with 20+ years left on their refinanced mortgages. Instead of preparing for the mortgage burning party that their parents had when that generation retired, they are wondering how they can make house payments on a lower income during retirement.
Since this is the first year of the boomers reaching 65, it is going to be a negative drag on housing for years to come.

For the San Diego and California real estate market we have to contend with our own Cap & Tax laws going into effect in 2011 that will increase utility costs by 20% over the next five and speeding up the loss of manufacturing jobs. We also have a new, old governor who was against proposition 13 which sets a maximum cap on property taxes and will likely propose new massive state taxes to deal with a $ 25.4 billion budget deficit.

So as the tune of Auld Lang Syne fades away, let me wrap this up with my opinion that there won’t be any strong base building in San Diego real estate until 2012. I could be wrong and there will be a tremendous growth in appreciation starting this month or in the coming Spring, but based on my 2005 article where I predicted this lousy housing bust, I wouldn’t exactly bet against me.

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Details for you to Check out in a Real Estate Specialist

Whenever you determine it’s finally time to start the search in earnest for a house, getting a Real Estate Agent in your corner may end up being a tremendous aid in your effort, both in terms of time saving and real estate knowledge. Nevertheless, this of course suggests an additional question: How do you choose a Real estate professional in the first place? Exactly what features and knowledge should you be searching for when finding a Real Estate Agent?

Know-how – Your Agent’s knowledge base is certainly one thing important to think about when choosing whether or not to work together with them. Nevertheless, you may not have recognized all of the possible areas of information for you to take into account. Kinds of understanding could consist of:

Geographic – Quite a few Brokerages concentrate on a distinct geographic region, such as some particular area of the local community. These kinds of Real estate agents possess in depth understanding of their own “territory” such as instructional establishments, crime levels, as well as architectural and efficiency of easy access factors for their region.

Legal – A number of Real estate agents possess considerable expertise in legal procedures, such as dispute prevention and settlement, rights and responsibilities, and probable legal pitfalls. When working with a complicated deal, these Agents are priceless as guides

Kind of Purchase – At times you may not be acquiring a house as a residence – you might be choosing to buy a house with the target of financial gain. A lot of communities, for example, have got a selection of condominium areas, in which investors frequently search for acquisitions. An Agent who will work with speculators on a normal basis may be acquainted with investment measurements and hazards to help make the most informed choice for your economic investment.

Practical experience – Practically nothing measures up to the experience of a financial transaction which has gone effortlessly. An Agent utilizing practical experience can easily help you with the home buying process with the minimum amount of emotional stress. Think about the following: That while for you, the buyer, this could be the very first (or 2nd or 3 rd) time you’ve acquired a home.

For a seasoned Realtor, this could actually be the one hundredth time (or even more) that the Realtor has been involved in a deal. This sort of familiarity with the purchase process develops comfort, and you can locate your property assured in your Agent’s skills to handle difficulties which might appear. Check for a Real Estate Agent with plenty practical experience in order to help to make your deal go as effortlessly as it can.

Work Ethos – Your Agent is actually, most likely, a professional character. Even so, every Real estate agent offers their particular style. A multitude of these people possess somewhat established working hours and days of the week on which they work, several other people work at any given time or day. Some tend to be in ongoing contact making use of technologies like smart phones and laptop computers, thus if you endeavor to gain access to them via email, Facebook, or Twitter they’re certain to answer nearly instantly. Others still decide on more typical methods and timescales for connection, therefore if you e-mail these types of individuals, you ought to assume a response within the next day or two. Complementing your own work expectations along with your Agent’s work ethos may assist in making certain of a smooth relationship during your home search.

Want to find out more about Clairemont Real Estate, then visit The Clairemont Real Estate Team’s site on how to choose the best home in Clairemont.

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5 Tips in Buying Real Estate

Cebu Real Estate continues to stand proud of its booming real estate development which great success by leaps and bounds as compared to any city or area in the Philippines today. While Cebu continues to enjoy a robust real estate industry, it is important that buyers need to be well educated in order to make the most out of the real estate market.
These top ten tips to buying real estate will help you enter into your next real estate transaction with confidence.

TIP #1: Contact the right Agent or Real Estate Broker

Contacting the right Real Estate Agent or broker is invaluable. In Cebu or even in the Philippines, you need not hire an agent or broker but just contact them and they are more than willing to help you find the property your are looking for in a manner as if you are hiring and paying for them. The small percentage of income from sellers/developers is already substantial for them that they no longer impose commissions from buyers.
If you are unfamiliar with the area, the realtor you choose is your link to important information regarding schools, zoning, city and county regulations, neighborhood trends, building and remodeling and rental restrictions, and property values.
Every city has different laws governing what can and can’t be done with a property.
You can find an agent or broker from friends or associates, directories, housing exhibits on shopping malls and nonetheless, the internet. It is important that you have a background of your prospective agent or broker and seek initial contact to find out if he can possibly do business with you in helping you find the property best suited for you.

TIP #2: Pre-qualify for Financing

Pre-qualifying for a loan may not seem that important until you find your perfect paradise property. When a property is priced to sell, it will usually attract more than one buyer. Once a seller receives an offer, the two most important things they consider are …the price, and the contingencies. For some sellers, a contract contingent on the buyer obtaining financing makes them uncomfortable with the offer.

Eliminate any doubt in the mind of a seller, by pre-qualifying for the amount you may spend on the purchase of any property.
This is especially important if your dream property suddenly has a price reduction.
When this occurs other buyers might come into the picture, that didn’t look at that property before it went “On Sale”! Often times a seller will take a financially sold contract over a higher offer. Be ready to put a deal together!

TIP #3: Consider the “best location” suited to your needs and situation.

“Location, location, location”, while overused as a real estate phrase, is still and always should be a huge consideration to you as the buyer.
If something about the location of a property bothers you, be aware that the same location drawback will bother any buyer you hope to attract when and if you need to resell the property. It’s important to ask a lot of questions, but often times it is difficult to know the right questions to ask if you are unfamiliar with the community.
This is why it is so valuable to choose and hire the right real estate agent to represent your interests when buying a property.
You will have to consider the areas that you need to be frequent such as your place of work, the school of the children, distance to malls for your groceries, and consideration also for churches and contingencies such as hospitals in times of emergencies.
More often, the desired location commands a higher price and the less desired are almost always affordable.
The important thing is to strike a balance between affordability and location as it is most of the time extremely difficult to get the best of both worlds.

TIP #4: Get a Home Inspection

Obtaining an inspection report performed by a licensed professional building inspector of your choice, can protect you from many defects that are hidden from view.
Why gamble with such a large financial investment?
Let a professional building inspector point out areas to be fixed or replaced that aren’t obvious.
A good inspector will give you a lengthy report covering all systems in the home from electrical, to plumbing, to roof conditions, and structural concerns.
Once you receive a report you may begin negotiations again concerning repairs.
Often a seller will agree to make necessary repairs up to a specified financial amount. When a seller lists their property “as is” they are letting you know that they are not willing to fix or replace any part of the property.
If you are interested in an “as is” property and aren’t going to level the structure and build new, it is still in your best interest to obtain an inspection report.
Don’t rely on the building inspector to look for termites and other harmful pest problems. Although an inspector will see pest damage, it is best to have a separate termite inspection conducted by a licensed company that understands pests and can eliminate them.

TIP #5: Obtain a Survey

Surveys will show easements, encroachments, and boundary lines of a property.
By surveying a home in an established neighborhood you are assured that the property boundary lines have been maintained.
As homeowners add on the their properties over time with fences, sheds, docks, garages, and other structures, boundary lines can be crossed placing part of their structure on your property, or vice versa. Surveying vacant land is also important for same reasons as a home, plus a survey will help determine the size home, or amount of coverage the lot will allow.

Cebu Real Estate continues to stand proud of its booming real estate development which great success by leaps and bounds as compared to any city or area in the Philippines today.

Things to Consider While Hiring Real Estate Consultants in Noida

What exactly you thing when it comes to real estate agents? Generally people have a common perception about real estate agents that they are people who show the properties and earn commission on the property deals. However, there are so many responsibilities associated with real estate agents, you may not aware of.

By what means would you be able to put a point of confinement on adapting more? The following segment may contain that one tiny bit of knowledge that progressions everything.
Why real estate agents?

In the event that you are hoping to purchase or offer real estate, don’t get have like a large number of other individuals out there, in feeling that you needn’t bother with a real estate specialists. The vast majority who purchase or offer homes, by and large surmise that a real estate operator is a misuse of cash. The individuals, who decide to purchase another home, imagine that real estate agents in Noida just add to the expense of acquiring the home.
The approaches can change significantly from state to state and organization to organization, which is the reason you ought to dependably check any research material or contracts that are given to you to guarantee that you comprehend what you are bouncing into. When you are talking with agents, make sure to get some information about whatever other sort of charges also.

Main 3 things to consider when searching for genuine estate specialists:

1. What you have to pay special mind to when you are talking with a real estate agents – on the off chance that he or she isn’t acquainted with up front installment help programs, you shouldn’t procure their administrations. Those agents who aren’t acquainted with these sorts of projects for the most part aren’t on the level, or they may do not have the experience important to help you buy the home you had always wanted.

2. Meeting the greatest number of real estate agents as you can before you settle on the most imperative choice in this procedure. Get a rundown of real estate agents that you can meeting taking into account referrals from companions, loan specialists, and even crew. Moneylender’s referrals are regularly an extraordinary decision as most moneylenders have worked with their proposals in the past and both are as of now acquainted with one another. Picking a loan agents referral can likewise keep you from experiencing any deterrents or shocks.

3. When you talk with real estate agents in Noida, guarantee that the agents clarify his charges forthright. Thusly, you’ll know precisely the amount he will be getting from the buy. It is savvy to discover the amount of experience he has in the field, and to what extent he has been working with real estate. It likewise helps to get some information about example contracts also. On the off chance that you are purchasing a home, you ought to verify that the agents meet expectations with purchasers. In the event that you happen to be offering your home, then you’ll need to verify that the agents live up to expectations with venders. Agents that are committed to one or the other are the best decision, as they will have more experience than agents who work with both purchasers and merchants.

Real Estate Consultants in Noida
Founded in 2006, keeping values and ethics as base CRC has grown organically to become one of the India leading real estate advisors. CRC gives a different yet coherent perspective to real estate dealings. It is not just a consultancy, it is about building and strengthening relationships with the clientele. It is about building better space solutions with judicious use of resources.

More AT: http://www.crcadvisor.com/

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How Association Of Real Estate Agents Has Helped Real Estate Agents In India?

Association of Real Estate Agents (AREA) has been incorporated as non-profit organization intent to work for the welfare of the Real Estate Agents and to help and support them in every aspect where they can augment their business through being a member and getting many benefits which will enhance their credential in the market. As per the latest survey report it’s have been found that real estate is one of the largest booming sector and second largest employments providing industry in the world. Where real estate agents are playing a vital role in this industry or we can say that real estate agents are the back bone of this industry.

Objective

The main objective of AREA is to bring all the real estate agents under one cluster and get united, maximize their social and business reach, to get more and more business and earn a handsome amount which is their genuine rights. Area will abide its associate members under bylaw which will be accepted and to be obeyed by each and every individual’s member. The main objective of area is to foster such a structure and to make such a system where zero level problem suppose to be arisen, and if it happen then AREA will provide all kind of supports to its associate members such as brokerage, legal ,website and annual return.

Why Association is Important

When a group of people working in a same profession, facing the common problem and every individual have their own working style and follow their own rules and fighting their problem by their own. Then in such condition an association is the only option and way-out to overcome all the odds and bring everything under control and systematic.

Genuine Problems Real Estate Agents are facing in their businesses and their permanent solutions provided by AREA.

Brokerage – Everybody run its business to earn profit or to make money. The earning of a real estate agent is completely dependent on the brokerage which they charge to both the parties individually the buyer and seller. To get the deal done they do a hard work and suppose to show all kind of stuffs to their client which matches their requirements. But once the client got the flat, shop, office or anything which they are looking for they start being negligence to pay them their brokerage charge they start doing dilly- dallying.

Solution – If any of the associate members of AREA will come across such problem, then under those circumstances AREA will take a stand for their associate member. AREA will provide a legal document to its member Agents which will be containing certain points, terms and condition regarding brokerage, and will be mutually signed by both the parties before availing their services. This will assure the agent about their brokerage paid by the clients. If any breach of agreement suppose to be happen in terms of brokerage after getting the deal close then in such condition AREA will take care of that and a legal notice will be serve to the party regarding the brokerage; and AREA will not charge any hidden cost for serving this legal notice to the party; apart from the association registration fee which is supposed to be paid yearly.

Rent Renewal – As per the standard rent agreement the tenure of a rent agreement is valid for eleven months and it should get renew or a fresh agreement suppose to be made after each tenure. But unfortunately once both the parties (Landlord and Tenant) get into an agreement they don’t come for renewal for the next due date. It gets done by them itself with their mutual consent. The estimated data shows that the percentages of such cases are nearly 90% is there. Under such situation a real estate agent carries a big loss every year.

For example:- If a Real estate agent close 10 deal in month @the rate of Rs. 10,000/- brokerage than in a year they are bearing a loss of Rs. 12,00.000/-

Solution – To overcome this big problem and to cover a big loss, AREA will provide a exhaustive prepared terms and conditions to all the associate members which is been prepared to make sure that their renewal l’ll be get done by them if the party is continued in the same premises, flat, shop or offices. All the parties have mutually signed the documents before getting or providing any services.

Website – Though we are living in 21st century and the whole world is running very fast where people don’t have time, everything is being fast and easily accessible and reachable to mankind. People are looking all the services to their door steps. In this fast pace world we have found that most of our real estate agents are running their businesses with a proper individual website. Which day-to-day getting them out from the market and business, because they are not all visible to the most of the real seekers after having good stuff of property.

Solution – To help its associates member AREA is providing a full fledge website to every individual associates member, which will help them to maximize their reach in and around, they will be visible to everyone from any corner of the world. They can Post their unlimited property, maintain their own cliental data, and maximize their reach and business.
The minimum cost to maintain a real estate website for a year, come around Rs. 15,000 to Rs. 20,000/- thousand. But AREA is giving it free to all its associate members in the same amount paid for the association membership fee.

Property Website – To walk along with the time and to full fill the demand of the time almost all the real estate agents are dependent on professionals property website, to list out their property and to get visible in the market, and to availing such services they are paying a good sum to them for listing their own property and using their cliental data base.

Solution – For the help of our members AREA has solved this problem and providing a full fledge property website which will be completely free to all its member and unlimited posting, search and cliental data base will be available for them. This will be maintained and updated by the highly professional people. No charges will be ask from the associate agents as all the services are included in the association registration fee which is payable at one time.

Annual Return – One who are into business and paying their IT returns on time they all will be in the good book of government and they have their own credential in the market. Considering it one of the vital parts to run a successful business AREA is providing a support of Chattered Accountant (C.A.) to all its associate members who will take care of their IT returns every consecutive year. For the said services a bare minimum cost will be chargeable to the members which can be bear by their pockets. This will show their credential and lawfulness in the market and business.

Get to Gather – As there is a very famous saying in the market the more you become visible the more you become recognizable. The real estate business is completely based on networking and accessibility the more your contact, network and visibility will be there the more you get business. Understanding the need of the agents and considering I beneficial for the business AREA has planned such a program where all the associates’ agent will get a chance to augment their network and social contact, as well as their reach to maximize their business and profits.Every year they will be attending 7 meeting, which would be divided as follow-

City Level meeting – 4 times in a year.
State Level meeting – 2 times in a year.
National Level meeting – 1 in a year.

Respect and Recognition

Membership of Recognized National Association.
Membership Identity Card.
Membership Certificate.
Recognition within Industries peers and associates.

Working and Structure of AREA

To run a successful and ethical organization a systematic and structured hierarchy is very essential. It is important for every individual from top to bottom; that they understand their role and responsibility, their work and to whom they have to report.
A standard organizational structure plays a vital role in the organizational growth and to get the things done on time with maintaining complete decorum. Standard organizational structure is a back bone of any successful organization.

Though AREA has been incorporated for the welfare of the real estate agents; keeping our motto and objective in mind we have formed such an organizational structure where it will define role and responsibility of every individuals.
There will be only one committee of board of directors which will be headed by _ numbers of people and they will be sitting in the corporate office of the association which is located in Mumbai.

Initially AREA will start its operation in the thirteen states of India; where a local governing body will be formed. The committee consist of six members who will be responsible for day to day affairs of AREA in that particular region such as; resolving all sorts of local problem with the consent of Board of Directors, maintaining accounts, taking care of local expenses, and organizing local meeting. The complete role and responsibility will be assigned according to their position in the committee.

Business Prospects and an Opportunity to Maximize the Earning

AREA will help its associate members to maximize their earning not only through renting and selling out the flats, plots and shops. But by introducing binomial structure in the association; this binomial structure will provide a tremendous opportunity to all the associate members to earn a good sum by introducing a new agent in the association.

For further details about Membership benefits or any query please call on 91-8108888176

The author is an expert and share his views how association of real estate agents has helped various real estate agents across all over India.

The consequences of New York real estate sentiment

The New York real estate market has improved for both the buyers and sellers in this year as per the survey carried on by the Siena College Poll. As per the survey, more than two thirds of the New York residents believe that the real estate NYC has improved. The respondents were asked about their feelings on both the current and future buying and selling markets in this city by using the statistical analysis to award scores as -100 to 100. Where the score 100 is awarded if everyone polled responds positively and the score -100 is awarded if all responds negatively.

The New York state’s overall real estate sentiment was pegged at 17.7 percent during the third quarter of 2013 that reflects the citizens’ optimism about the New York real estate market. The real estate is in the thriving zone with people seeing a steady growth in the real estate values with both buyers and sellers coming out in the open. However, with the advantage for buyers over sellers having gone, New Yorkers see real estate as an attractive investment option. The latest three-month report released by the State Association of Realtors also reflected the positive real estate sentiments with market showing signs of returning to normalcy. Closed and pending housing sales jumped to 17.4 percent in July, August and September-2013 compared to the same period in 2012.

The Siena poll predicts that the real estate market will only continue to stabilize and grow. Across the state, the overall future score was 24.8 in the third quarter that is down by 4.8 points from the previous three months. The real estate NYC is facing the aftereffects of the completion of one year of post Hurricane Sandy with New York area homeowners drowning under the wave of foreclosure notices. In the hurricane-ravaged Queens, foreclosure activity was up by 61% while the median price of homes went up by 16%.

The foreclosure activity in the New York City and the Long Island surged 33% in the first nine months of 2013 compared with the same period last year indicating that Sandy victims are unable to keep up with their mortgage payments or are choosing to abandon their damaged homes as per the special report from RealtyTrac. Manhattan was the only borough surveyed by RealtyTrac where foreclosure activity was down post-Sandy implying that Sandy victims in Manhattan were more financially stable and those who are not able to make their payments were able to find real estate buyers for their homes. Real estate buyers are purchasing the foreclosed homes sold by banks in a big way because they are priced below the actual market price. According to CoreLogic (California based real estate data provider) overall, there were 48,000 completed foreclosures in the United States in August, down from 72,000 in August -2012 which is still higher than the national rate of 2.36 percent. The states with the highest foreclosure inventory as a percentage of mortgaged homes are Florida (7.9%), New Jersey (6.2%), and New York (4.9%).

New York Global Real Estate is a well-recognized name in the New York real estate sector in locating, buying, marketing and investing in the residential real estate market. Sellers can put their New York properties for sale by utilizing the advisory and consultation services being offered by New York Global Real Estate.

The changing status of New York real estate brokers

The New York real estate scenario is becoming multilingual with more and more international buyers flocking into the market. Being able to interact with foreigners is becoming a prerequisite qualification of success for New York real estate brokers. The international investment in the New York real estate especially of luxury condos for sale in NYC is growing steadily over the last decade and it has totaled to about $ 1.96 billion during the half of this year as per the report of Real Capital Analytics. With the buyers becoming international, the New York real estate brokers have also changing their essence of doing business.

There has been noticeable increase in the number of brokers who are speaking foreign languages especially in and around Central Park south where one can find brokers speaking every other language except English. Some of the city’s top producing agents are hiring assistants and sending them to school for broker’s recertification. Moreover, every one of them is a Brazilian, Canadian, Asian or of other nation. As of now, speaking a foreign language is almost a skill that is an essential requisite for working as a New York real estate broker.

Majority of New York real estate firms are employing brokers who can speak more than one language as they feel it is important to accommodate buyers and sellers from diverse backgrounds. Some of the agents recruited by the real estate firms in this city speak Portuguese, Spanish, French, Chinese, Swedish, and Hebrew and sign language in addition to English. The clients of these real estate firms are quite delighted that the agents are speaking in their own language and there is an increase in the trust of these clients.

There is now a rising trend among real estate brokers to study Chinese culture and learn Chinese language to serve the high-end Chinese clients in New York. There is a rising trend among brokers who are not native Chinese speakers taking course in Mandarin at New York’s University’s School of Continuing and Professional studies. This course informs the students about the customs in real estate transactions, expectations in living standards, the relationship between buyer and seller and the role of the broker as an intermediary.

According to the National Association of Realtors, clients from China have emerged as the second biggest group of foreign buyers in the United States residential market that are surpassed only by Canadians. The report of the Real Capital states that, China leads all foreign countries in New York property for sale deals this year with $ 1.37 billion of acquisitions not including the Chase Manhattan Plaza. Next stands Canada with $ 1.19 billion. The excess capital in China is finding its way by investing in real estate NYC due to the belief that Chinese investors would gain from recovery of the American economy and real estate market. With the New York City having emerged as the biggest beneficiary of the Chinese real estate buying spree, it is evident that some brokers are seeing sense to seek out aggressively for Chinese buyers on their own turf.

New York Global Real Estate is a well-recognized name in the New York real estate sector in locating, buying, marketing and investing in the residential real estate market. Sellers can put their New York properties for sale by utilizing the advisory and consultation services being offered by New York Global Real Estate.

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New York real estate bounces back post Sandy

The New York real estate has recouped well post Sandy super storm that caused about $ 42 billion in damages across New York State with damages amounting to $ 19 billion in New York City alone. Majority of property were destroyed or were deemed inhabitable in all five boroughs after the storm touched down on October 29 last year. However, in spite of the storm, the long lasting impact of super storm Sandy on real estate NYC was minor. According to the New York real estate brokers , about 80% of property is nearly renovated and repaired back where they were before Sandy.

Many of the housing units are in the process of being repaired and the storm’s devastation did not affect the real estate interest among real estate buyers in any of the boroughs. Majority of residents are choosing to rebuild rather than to relocate. As per the statements of the New York real estate brokers, the storm has only affected the coastline with just about 1% of New York real estate. International real estate buyers are continuing to show interest in the city and the selling market has gained some strength but buyers are opting to consider locations away from flood zones as values in those areas are down between 2% to 5%.

Fewer New York homes for sale have been taking place across Rockaways in Queens and in Brooklyn. However, in the New York City the New York apartments for rent and the cost of New York homes for sales are hovering through the roof even in newly mapped flood zones in Manhattan. The Manhattan Condos for sale market has rebounded even after the Sandy flooded basements and lobbies last year with sales having taken months to jack up in heavily damaged areas such as Rockways and Staten islands’ that were located in flood zones.
In Manhattan’s financial district, sales were 44% compared with pre Sandy numbers and median prices rose by 15%. Sales increased in the hard hit neighborhoods such as Howard Beach, Queens where sales jumped by 37% though the median prices were lower by 10%. Sales bounced back even in the hard hit Staten Island neighborhoods in the third quarter. The negative impact of the Sandy was particularly acute in neighborhoods in the outer boroughs.

According to real estate brokers, fewer unrepaired damaged homes are listed for sale in and around the city. The inventory of repaired homes with newly renovated basements plus new boilers and electrical wiring is shrinking. In the Rockaways, where majority of basements and many ground floor levels were swamped, the real estate buyers are interested due to their attraction towards lower prices. Majority of them are worried about the availability of affordable federal flood insurance than another storm.

The StreetEasy study found that the Manhattan real estate market paused for a while after Sandy smashed New York. During November-2012, the listings in flood zones dipped by 21% and the number of contracts signed slipped by 24% compared with November-2011. However, the numbers bounced back with contract signing in TriBeCa and the West Village soaring faster than in any other areas. By April-2013, contracts were up by 28%.

New York Global Real Estate is a well-recognized name in the New York real estate sector in locating, buying, marketing and investing in the residential real estate market. Sellers can put their New York properties for sale by utilizing the advisory and consultation services being offered by New York Global Real Estate.

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San Diego 2012 Real Estate Forecast

Where does the San Diego real estate market seem to be headed for 2012? Once again at this time of year, when all the pundits come out with their forecast, it’s the rare individual that does not go along with the real estate industry’s proverbial ‘now’s the time to buy’ mantra. I’m going to be part of the 1% who deviates from the traditional ‘by now before you’re priced out of the market’ end of the year talking points.

I bet you have an idea where I’m going with my report for the Outlook for San Diego real estate values in 2012. Before I get into the meat of my forecast, let’s take a quick look back at the titles of my prior forecasts for the real estate market and short synopsis of each:

2005 – – San Diego Real Estate — A Trend to Go National? (The big divergence between home sales and home prices seen here in San Diego indicated a dropping market and a real estate trend I thought would go national.)

2006 — San Diego Home Sales Figures: Not All That They Seem on the (industry and news reports indicated that San Diego home value drops were substantially less than what was occurring in the real marketplace. This was mainly caused by failure to consider all the concessions that developers as well as private sellers were offering to entice buyers to purchase San Diego homes.)

2007 — Is Your San Diego Home Appraisal Really Accurate? (This focused on the fact that many appraisers were overvaluing San Diego homes because they were not fully considering seller concessions that were taking place in the open market.)

2008 — San Diego Real Estate Market: What Did You Expect? (How the main-stream media still did not raise any real estate red flags in late 2005. Instead it was ‘just a return to normal’ or “a great time to buy without the pressure of multiple offers.”)

2009 — California: Land of Sunshine and a Year of FREE Living (How many California underwater homeowners were living mortgage and tax payment free for a year or more before foreclosure)

2010 — San Diego Real Estate 2010 Forecast: The Year of the Strategic Mortgage Default (For 2010, San Diego housing will remain a risky deal that will again be dominated by government intervention. Until both the Federal and State governments get out of the housing market, a real bottom will not occur, thus San Diego housing values will continue to decline well into the next year.)

2011 — San Diego Real Estate 2011 – Year of the Short Sale: I personally do not see any real base building in the San Diego real estate market until 2012.

Now let’s look at 2012 for San Diego home values. Back in the summer of ’05, one of the main factors for my calling a market drop was the drop in sales activity while home values continued to increase basically because of the lag time in reporting. Well, I believe the same could be occurring now, except in reverse! With sales increasing (hopefully this trend will stay in place) I believe the San Diego real estate market will finally see home values stabilize in 2012.

I’m not calling for some slingshot snapback in home values next year. I’m calling for, to be precise, the continued modest decline in San Diego resale home prices through at least the first half of 2012. Naturally, barring some major detrimental economic news either here or in Europe, I think the second half of 2012 could see some solid base building, with perhaps, some modest single-digit appreciation by year’s end.

There continues to be talk about pent-up buyers to getting into the market. The theory goes that many potential first-time buyers and move up buyers have been holding off getting into the market and once they see some improvement will rush back in a big way. I said this in a number of prior posts, and I’ll say it again now: I believe there is pent-up demand in today’s San Diego real estate market! The ‘you can never go wrong buying real estate’ crowd has this pent-up demand theory 180° backwards! Personally, I see it not as pent-up demand to buy, but just the reverse! Yes, pent-up demand to sell! I’ve seen many current San Diego homeowners who have seen their home values drop 30% or more during the last six years who would love to recapture a small amount of that decline. They could then move on to a home more suitable for their current family and economic situation. When we finally do see some modest San Diego home value appreciation, I believe we’ll see a lot more inventory become available from these San Diego homeowners.

I usually end these forecast by saying that I hope I’m wrong and things turn out better for San Diego homeowners that I’m forecasting. I’d like San Diego home prices to make a sharp upswing in 2012, but with the magnitude and longevity of San Diego’s real estate home value bust, I don’t really believe that there is NO chance for such a fairytale snapback.

Read more of Bob’s ‘tell it like it is’ real estate opinions & subscribe to his free blog feed at: San Diego real estate market blog  – San Diego real estate agents Bob Schwartz is a San Diego California real estate broker, CRS w/30 Years of real estate experience!

San Diego Real Estate 2010 Forecast: – The Year of the Strategic Mortgage Default

It would be easy to write a 2010 real estate forecast by repeating the industry line that “the new year will mark a turnaround for real estate values; those who act fast will be able to get the best buys.” Real world facts, at least in San Diego, seem to indicate otherwise.

San Diego’s real estate market will most likely have another down-turn in the year 2010, and there are many rationalities why. Remember, many of the adjustable home loans were designed with five and seven year interest adjustments. Many home loans are set to correct next year since the San Diego real estate market boomed in the summer of 2005. The saving grace is that interest rates are near all-time lows and interest rate shock will not be a tough factor. The downbeat with these mortgage adjustments will be the ‘reality check’ factor. How many homeowners will suddenly wake up to the fact that their home is now worth tens of thousands of dollars less than their mortgage balance? Only the naive will believe that their San Diego home’s value will click back soon.

The Northwestern University of Chicago has found that as many as one in four defaults may have been strategic. Driving this phenomenon is the rising number of households that are deeply “under water,” owing much more than the current value of their homes. First American CoreLogic, a real-estate information company, estimates that 5.3 million U.S. households have mortgage balances at least 20% higher than their homes’ value, and 2.2 million of those households are at least 50% under water. The problem is most deep in Arizona, California, Florida, Michigan and Nevada.

So, whether or not you think the San Diego real estate market has bottomed, the reality is, it will take numerous years to recoup equity losses many have endured. 2010 may go down as the year of the strategic mortgage default because of this homeowner awakening.

Talking-heads who claim the U.S. housing market has “bottomed,” or even that it will “bottom” in 2010, don’t have the slightest grasp of fundamental economics. Government and the vast majority of media are using the old tactic of trying to talk us out of this downturn. Any bit of positive new is over-emphasized while the terrible, realistic conditions are hardly noted.

The government has spent trillions of dollars and has not made ca significant impact on the problem. Government saved Wall Street banks, at least for now. Will government platitudes actually turn around our economy? The administration thinks so. They are closing their eyes and wishing really, really hard that it does.They also should remember to click their ruby-red heels three times to insure success.

The best parallel to our current situation continues to be the Great Depression. In 1930, we had a 50% stock rally and abundant “green shoots” before the market turned down in a relentless decline. This time the government intervention is much larger, but so too, is the credit bubble.
Many agree the real unemployment rate is 17.5%. How can the housing market improve until unemployment dramatically improves?

Property values only go up if there is an increase in demand. That is NOT happening. The birth rate of the US is just enough to sustain our population, nothing more, and it would be negative without immigration.
Another major factor affecting San Diego real estate demand, is that the severity of our current home value decline seems to have broken the back of the myth that you could not lose money purchasing residential property in San Diego or California. Until the devastation to San Diego home values, fades from the collective consciousness, demand for housing will be a fraction of what it was.

Those who invest in real estate and expect values to appreciate need to face the fact that by mid-2010 there is a high probability we will be in a rising interest rate environment, which will boost costs on mortgage loans substantially. We all know it is now much more difficult to qualify for a mortgage even with some of the lowest interest rates in history. What will happen when interest rates move up? Will the government again step in with some type of subsidized interest rate/qualifying program (much like the sub-prime debacle)?

On 10-1-08 I published: #1 EZ Fix to The U.S. Housing Market (http://www.brokerforyou.com/brokerforyou/1-ez-fix-to-the-us-housing-market.html)where I suggested an easy way to stabilize the real estate market. My idea was for the government to grant investors who buy and hold homes for at least three years, but no more than seven years, 100% exemption on any capital gain they may realize. Well, perhaps because this was a low cost idea involving ‘investors’ it never gained any traction. But, I still believe it would be a sure-fire fix to our housing doldrums.

Here in California the largest state tax rate just passed; there is talk of additional state tax increases. That, coupled with our already high electric, water and gasoline taxes, portends California homeowners’ disposal income is headed for oblivion! Further combination with the administration’s new health care costs and Cap & Trade’s dramatic impact on utility costs, only the hope & change commissars will be able to afford California detached homes. The California masses will be, out of necessity, forced to live in huge apartment complexes. The California standard of living will take a huge hit, but look on the bright side … mass apartment complexes will reduce commuting, contain urban sprawl and cut down on carbon emissions! Perhaps, most importantly, the extra taxes will insure the California public workers pension plans will continue to provide lottery-sized benefits into the foreseeable future.

Higher rates to support currencies will intensify deflation. Intensifying levels of bankruptcy and foreclosure due to salary decreases and job loss will intensify deflation. A century of inflation is coming unwound in a decade.

In an academic paper titled, “Underwater and Not Walking Away: Shame, Fear and the Social Management of the Housing Crisis,” written by Brent White, a law school professor at the University of Arizona argues that those who are underwater in their loans should just leave.

By leaving, it could potentially save them thousands and it won’t be long until they recuperate financially. Defaulting “strategically” can entice more walk-always by buying all the major items they may need in the near future, such as a car or even a house, right before they take a hike. As long as you stay current with other mortgage lenders, one could potentially have a good credit standing in 2 years after the walk-away.

In my 7-27-09 post titled: San San Diego Homes – WHEN IT PAYS TO LET THEM FORECLOSE!(http://www.brokerforyou.com/brokerforyou/san-diego-homes-when-it-pays-to-let-them-foreclose.html) I noted that: In the Northwestern University study, among those without moral reservations, 63% of those homeowners with a negative equity of $ 300,000 or more would let the property go into foreclosure.

In my 9-22-09 post titled: Foreclosures – Strategic Defaults Double (http://www.brokerforyou.com/brokerforyou/foreclosures-strategic-defaults-double.html) I noted that: Strategic defaults … financially it’s a logical, legal, defensive decision to make. Why throw good money after bad? No more property maintenance, taxes, insurance, etc. With rent prices falling and rental vacancies rising, it makes perfect sense to bail out and have more disposable income at the end of the month. Survival is the name of the game.

So, based on the strategic default statistics and Professor White’s ideas, there is a good likelihood that 2010 could go down as the year of the strategic mortgage default.

While the highly distressed markets like San Diego, will continue to be pressured by foreclosures and myriad other headwinds. The smaller more conservative metros will benefit from the incredibly low inventory levels and should start to see a rebound in new construction activity in the coming year.

All real estate markets are local. I agree with the National Association of Realtors on this particular area. Therefore, I can only venture an opinion on the San Diego California residential real estate market. For 2010, San Diego housing will remain a risky deal that will again be dominated by government intervention. Until both the Federal and State governments get out of the housing market, a real bottom will not occur, thus San Diego housing values will continue to decline well into the next year. The low end of the San Diego housing market is the one exception to my forecast. The low end properties have demonstrated a base building through the second half of 2009. I expect this favorable trend to continue into 2010.

There are many elements that affect San Diego real estate values. I have ended my opinions for years now for the following year’s San Diego housing outlook with this statement: “I hope the market proves me wrong and that my forecast ends up totally off-base.” With that said, however, I’m a realist; and I personally would not bet against my 2010 outlook.

Read more of Bob’s ‘tell it like it is’ real estate opinions & subscribe to his free RSS feed at: San Diego real estate market blog  Also visit San Diego real estate agent   and San Diego real estate agents Bob Schwartz is a San Diego California real estate broker, CRS w/30 Years of real estate experience and an good guy.