San Diegans: CONSIDER YOURSELF WARNED!

Who Knew? Getting the FLU in the Merry Month of May!? I certainly didn't expect this. I was completely blindsided with it this morning. Not that anyone is ever really ready to get the flu, but some inkling that it's going around town would have been nice. I would have washed my hands more often.

So you won't be caught unaware, I'll let you know what to expect if the dreaded virus finds you. You'll wake up with a bit of a headache, and all of your muscles will ache like you did too much stretching at Pilates' class (at least that is what I thought). In a couple of hours, you will begin to feel like you have been run over by a truck. Every joint in your body will be screaming at you. You will have no choice but to lie down after taking as many pain relievers as you deem safe. The headache! You won't know what hurts worse: your head or your bones. Did I mention the chills? That's what will clue you in that this is serious business and you cannot (and should not) go about your normal day. It can be 80 degrees outside and you will be shivering and feel the need to burrow under a blanket.

After several hours of shivering and moaning, and probably too many pain relievers for your liver to handle, your fever will break. The best part is that your head will no longer feel that it is ready to split (where the term "splitting headache" came from, I'd guess). You'll begin to perspire and will need to grab a glass of ice water. Apparently this means the fever has "broke." I do hope that that is a good thing and that it won't glue itself back together and strike again once all those pain relievers wear off.

Then, you will pray. You will pray that this is the "24-hour flu" and not some tortuous Asian variety that we read about during flu season that keeps its victims in bed for a week. By the way, when exactly does flu season end? For all of your sakes, I hope it ends with me.

Happy Days Are Here Again!

Bloomberg.com posted the news that Consumer Confidence fell to a 5-year low and home prices as measured by the S&P/C-S Index experienced their greatest decline since at least 2001. San Diego experienced a year-over-year decline of 19.2% Will they drop further? Some say yes; some say maybe; some say no.

So, is anyone out there buying or are they all waiting for more declines in prices? Well, SOMEBODY is buying because we have put in countless offers for buyers and EVERY SINGLE ONE has been joined by multiple offers! This holds true for bank-owned and for short sales. (Most sellers who are not selling short or facing foreclosure are still priced out of the market and seem to be holding out hoping for that one buyer to fall in love and buy their home rather than go through the hassle of buying foreclosures and short sales.)

If you are a buyer who is looking for a long-term investment, waiting for the bottom is risky. Once we KNOW we've hit "bottom," the prices will already have begun to rise. Better to shop now while inventory is up and there are less buyers hitting the market. Good luck!

Forbes.com Says San Diego Prices May Rise Over Next Half Year

Some good news, guys! And we are seeing it in buyers beginning to be active, though still afraid to get their feet wet. We bought a house for investment, and we're not alone in the industry. Our main lender contact just bought a house to fix and possibly flip, as well! It is definitely in the air! Read this excerpt from Forbes.com...

Subprime still matters, as do the concentration of adjustable rate mortgages. Transaction volume, however, especially over the next 12 months is becoming an increasingly important gauge of a market's health. This month the National Association of Realtors reported that sales volume of existing homes was up 2.9%, the first such month-to-month rise since July.

In cities like San Diego, one of five major metros where transactions rose, that's good news, assuming it's sustained. What makes transaction volume a good indicator is that it shows how easy it is for people to get loans and how much confidence there is in the market. If mortgages are available and buyers have some faith in the value of the home, they're more likely to buy.
San Diego's present conditions suggest that over the next half-year, prices may start to rise. That's because "there's usually a three- to six-month lag between when transactions go up and prices go up," says Jonathan Miller, president of Miller Samuel, a Manhattan real estate appraisal firm.

Another good sign for the coming year? Increased credit availability.

We took into account increased Fannie Mae and Freddie Mac (GSE) loan limits. The new legislation will open up credit in markets such as Sacramento and San Diego by boosting the GSE loan limit by 125% of the median price. That's a huge deal for San Diego, where 18% of the market will see improved lending conditions, based on projections by Radar Logic, a New York-based real estate research firm.

http://www.forbes.com/2008/03/31/homes-risky-property-forbeslife-cx_mw_0331realestate.html?partner=email

The Wilmers Jump In!

We decided to buy a house for an investment! Sure, prices may inch lower, but the buys out there appeared too good for us to pass up. We have been shopping homes for our children since January in the $300K to $400K range. There are a lot to choose from here in East County, most of which are short sales and a few which are bank owned (i.e., already foreclosed). What we found was that every house - without fail, that the four of us liked and decided to put in an offer to purchase, received multiple offers! Hmmm.... We thought no one was buying real estate? WRONG! The under $400K market is heating up, and the under $350K market is HOT. Now, not every home under $400K is getting snatched up. Buyers are definitely shopping location. If the home is in a good location and is priced below comparables, it is selling.

The catch, of course, is that these properties need help. We were looking for what we called a "screamin' deal." The screamin' deals are, well, messy! The homes need TLC. Paint, flooring and landscape are necessary to appeal to this market's pickier buyer or renter, depending on the investor's plan. We aren't positive what we will do with our investment yet. If we can make a profit, we will resell it after we get it spiffed up. If prices have dropped lower at that time, we know we can rent it and cover our costs because it is in a great neighborhood.

We are excited about this new venture for us! We have been wanting to invest in real estate for many years but prices have kept us from taking the plunge, other than owning our own home. We believe that now is the time. We'll keep you posted on the results.