What's Hot and What's Not

One of the resources I use to track real estate markets is the House Price Index (HPI) published quarterly by the Office of Federal Housing Oversight. The latest report has just been released, and you can get it free at www.ofheo.gov.



What's in it? It tells you which states are appreciating the fastest, and which are losing value. Then it goes further and breaks it down by Metropolitan Statistical Area. For example, the fastest appreciating area in the country right now is Wenatchee, WA, and second is Provo-Orem, UT. Leading the country in price declines is Punta Gorda, FL, followed by Sacramento, CA.

By the way, the nation as a whole has posted a .45% gain for the quarter, and a 4.25% gain in the last year. While this is low by historical standards, the sky is not falling as the newspapers would have you believe.

Prices Continue Rising on Falling Sales

The median price for single-family, resale homes in San Diego County rose 0.9% in April from March, and were up 1.7% year-over-year.

These numbers are suspect as the market has split due to the tightening of loan requirements, which has dampened the entry-level and move-up markets. These numbers are higher than reality because the $1,000,000+ market, which is not affected by loan tightening, is a larger percentage of sales than normal.

This can be seen in the average price, which is up 2.9% year-over-year. A higher percentage of $1,000,000+ sales drives the average price up faster than the median price.



Home sales fell in April, reflecting the fall-off in demand at the entry and move-up levels, dropping 2.6% from March, off 15% compared to April 2006.

The median price for condos fell 2.7%, down 3.9% compared to last April. Condo sales rose 3.3% month-over-month, but were off 3.6% compared to last April.

The sales price to list price for single-family homes rose 0.2 of a point to 95.5%. The ratio for condos fell 0.3 of a point to 96.1%.

Days on market for homes fell one to 71 days. Days on market for condos dropped five to 68.

My advice? For buyers, with loan requirements being tightened, it is crucial that you be pre-approved and have a loan in place, especially if you are a first-time home buyer or move-up buyer.

For sellers, if your home is in the entry-level or move-up market, you will need a comprehensive & accurate Comparative Market Analysis (CMA) to determine your asking price and probable sales price. Call. If you're in the $1,000,000+ market, don't worry, be happy.

The real estate market is very hard to generalize. It is a market made up of many micro markets. For complete information on a particular neighborhood or for an evaluation of your home's worth, give me a call.

Angela Williams

Those of you who have signed up to search our local Multiple Listing Service and get new listings are familiar the name Angela Williams with American Home Mortgage. What you may not know is that Angela has been in the mortgage business for 11 years and is getting pretty good at it! She approved our last buyer and got the loan documents out in record time! What a pleasure is it to work with a professional, and not have to tear your hair out to get the lender to do what they are supposed to do. Since she is a nationwide lender, I'm having Angela do our loan in the GO Zone. If you want someone to work hard on your behalf and get the job done, give Angela a call at 858-405-2504.


Angela also enjoys the outdoors as we do, so we got together and took a 4 mile hike in our local mountains. Here we are on the South Ridge Trail, yours truly on the left, Angela in the middle and Crystal on the right.

Mississippi GO Zone

Hurricane Katrina devastated the entire Gulf Coast Region with the loss of 64,120 homes as well as over 47,000 rentals. This tragedy has created an opportunity for investors to find investments in what we hope to be an appreciating market like none other in the United States.

Perhaps the most significant reason we feel this investment opportunity is worthy of consideration is a recent change in the areas Gaming & Entertainment legislation. Prior to Katrina, all Gulf Coast Mississippi Casinos were required to be built over water. This was accomplished by building barges that were attached to land built structures. New legislation now allows Casinos to be built within 800’ of the coast line. This dramatic change, which we suspect in part was intended to hasten recovery, has created tremendous development and revenue opportunities that should ultimately benefit all sectors of the effected communities.

Some investors may even qualify for Federal GO Zone tax incentives. This potential investor tax savings could offset your down payment.

I want to offer you a quality stick built home at the lowest price available in the entire Gulf Coast Region. Special Investor pricing includes lot with sewer. We have purchased 3 different single-family home plans found in the Governor's Pattern Handbook. The area we are developing is Bayside Park, a community on the western edge of the Gulfport & Biloxi Mississippi MSA.

After much interaction/negotiation between the local governments, state officials, and premier builders, we have made this as easy as possible for the investor. We will get you pre-approved for a construction loan through a local lender, select a lot, assign a builder and find the lowest priced insurance company, Then, upon completion, we will refer you to a property management company or assist in the sale of your property. We are recommending a minimum 3-5 year hold time for this investment after completion.

Lots are moving up in price quickly and the timing in right since it has been 1 ½ yrs. since Katrina.

Due to the present housing crisis and the huge Casino expansion taking place nearby, the Gulf Coast is expected to be one of the hottest markets in the country.

I have a 24 page guide that explains everything about the area and the homes that are being built. It's yours for free. Interested? Get the investment guide.