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6515 Caminito Stella

4 br/4.5 ba, 4,879 sf

$2,035,000  7/05

$1,499,000  LP 

$1,625,000  SP 

1.12 ac. lot

This is the house that listed on New Year’s Day and within three days had 14 offers submitted – it ended up closing for $126,000 over list price.

The last sale in the neighborhood was $1,950,000 in December for 3,788 sf, and others around the Del Mar Mesa area in Carmel Valley’s 92130 are well over $ 2 million.

It had been offered in the low $2-millions before the first lender foreclosed on their $1,424,450 loan, so they actually made money on it – though the second lender got burned for $300,000+.

The listing agent did well for his client – there was no advance notice, it just showed up on the MLS – which caused buyers and agents to scramble, and because everyone was used to seeing it around $2 million, it looked like a deal at $1,499,000.  His assistants were chipper and professional on the phone, and they let everyone have a fair shot by counter-offering in writing to the bidders, requesting them to submit their highest and best offer.

The way the listing agent for Stella handled his process was in contrast to the other REO around the corner on Mesa Norte.  The listing agent had his for-sale sign sit in front of the house for 4-6 weeks before inputting it onto the MLS.  By the time they "got a price from the asset manager", the urgency was dulled because buyers were tired of waiting. 

Mesa Norte had also been marketed around $2 million by the previous owner, before getting foreclosed, and it listed for $1,899,000, which sounded a lot like the previous list price  - but it still had six offers come in on it. 

When the two houses sold new in 2005 there was a $240,000 difference between them.  Don’t be surprised if that gap has narrowed by about $90,000 when Mesa Norte closes, and you can attribute much of the difference to the two different strategies employed by the sellers and listing brokers.

We have discussed the suspiciously high sales in Bressi Ranch last year, and the alleged inflating of prices/kickbacks for property management that ensued. 

We know what happened then – what is the lasting impact?

Here is a summary of the Bressi Ranch high-end sales history:

2566 Discovery

4 br/3.5 ba  3,480 sf

$944,000  6/05

$1,350,000 3/07

DOM = 0

100% fin.

First strike – This was her first in Bressi Ranch, one that, according to how she put it in the system, she represented both buyer and seller, and  "sold prior to MLS input".  There had been a couple of sales in 2005 & 2006 of former model homes in the $1.2 to $1.35 range, but the market had began its decent by March 2007.  This sale was  a 43% increase in sales price between 2005 and 2007, and started the string of sales that fed on one another.  You can see on the sign that she tried to arrange for a lease-option, which was the basis for the program.   The idea was to find new buyers to lease option, in this case for $11,000 per month.

YB: 2005,  HOA = $205,  MR = $219

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6239 Lismore

4 br/3.5 ba  3,480 sf

$1,159,000  2/05

$1,350,000  5/07

DOM – 201 days

96% fin.

Second strike – The seller/agent of this house had been trying to get $1,199,000 to $1,229,000 between 9/06 and 2/07.  He cancelled the listing and put it back on March 1, 2007 at $1,225,000, and stated in the remarks, "no offers below $1,200,000".  A couple of weeks later he RAISES the price to the range $1.25 to $1.35 million, and marks it pending.  Later he let it expire, but tax rolls show it closed for $1,350,000, with $1.3 million in financing.  Jenae’s company is now the listing broker, and she told me that she sold it, though it isn’t marked in the MLS.

YB:  2005 HOA = $205,  MR = $219

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These two sales perpetuate the illusion that homes in Bressi Ranch are worth more than $1.3 million, at least for the ensuing few months.  What happened afterwards?

6253 Alverton sells for $1,210,000 for 4,608 sf – looks like a legit sale but seller/agent had struggled, the DOM was 245 days and he was trying to rent it too.  Buyers and their newer agent probably relied on the two sales above for comfort.

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6344 Huntington

4 br/4.5 ba  3,815 sf

$958,500  SP 5/05

$1,300,000  SP 9/07

DOM – 58 days

100% fin.

Third strike – The same newer agent (not associated with Jenae) listed this house for $1,199,000, and it closes for $101,000 higher.  The out-of-town buyer/agent, and unfortunately a victim of the scheme, buys it thinking that the rents will cover the $10,000 per month payment, including taxes.  He has since dis-associated himself from the agency who got him into this mess, and is trying to rent it now for $4,500 per month, hoping to hold on for a couple more years.

YB: 2005  HOA = $193, MR = $203

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Alverton could have started the natural decent again, but Huntington propped up the market for one more sale:

6388 Huntington could have been a legit sale – it was a FSBO from Orange County who hired a limited-service discount agent to input into the MLS, and it’s marked that the buyer’s agent was also from out-of-town.  The house is 4,040 sf, and closed for $1,350,000 – and if you’re an agent from out of the area and look at the three strikes above to determine value, the price probably sounded OK.  I guess they overlooked the fact that it sold for $1,000,000 in November, 2006.

This is the collateral damage – innocent people come along and think these three strikes are legitimate values – but they aren’t.  Not only that, many others have probably refinanced, using appraisals based on the three strikes. 

The highest sale since is $825,000 for 3,092 sf, on 9/20/07.

Worse yet, now other sellers are trying to get out, based on the illusion of values being in the $1.2 to $1.3 range.  Along comes Jenae to rescue one of her victims – she has listed Lismore (the second strike) for sale, trying to get her client some relief through a short sale – in the remarks it says ’submit all offers’.  It’s the first burnt-red circle below, plus the foreclosure listed two days ago (second circle) squishes down the chances of anyone getting $1.3 million anytime soon.

These are the active high-end listings in Bressi Ranch:

No charges have been filed against any of the perpetrators, though I have had more than one conversation with the FBI. 

Consider the trail of destruction left behind – it’s not just the banks of the three strikes that are going to take the hit.  These sellers are going to be sorely disappointed once they realize what happened.

We’ve talked about Caminito Stella, Mesa Norte, and Heritage, but they aren’t the only high-dollar foreclosures.  The REOs are flowing now, and no price range is immune – below are a few examples.  Check the banks’ pricing too – it seems they are getting more aggressive (the first four are in 92127):

15266 Winesprings

4 br/3.5 ba  4,136 sf

$1,115,000  SP 2/06

$891,950 1st loan

$223,000 2nd loan

$899,900  LP 2/08

This one just went pending over the weekend, after 51 days on the market.  List price is 20% below last sale.

YB: 2005,  HOA = $86, MR = $375

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17177 San Antonio Rose

4 br/4.5 ba,  3,675 sf

$1,443,000  SP 1/07

$1,000,000 1st loan

$298,423   2nd loan

$1,199,000  LP 2/08

In the Crosby Estates – four others for sale on same street between $1.449 to $1.995 million, and three of the four are smaller.  Note that the REO is unsold after 88 days, and price lowered from $1,300,000 – now 17% below last sales price.

YB  2006,  HOA = $492,  MR = $623

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7383 Los Brazos

5 br/4.5 ba  4,324 sf

$1,410,000  10/05

$1,490,000  refi

$1,199,000 LP 2/08

15% below last sale

This is the famous Ong house featured on BMIT – the bank has already foreclosed, and relisted it with their REO agent eleven days ago.  But Mrs. Ong is still featuring it proudly as an active listing, on the range $1.399-$1.450.  Did I mention that it backs to power lines?

YB: 2003, HOA = $227, MR = $742

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7404 Rancho CatalinaTrl

4 br/3.5 ba  3,975 sf

$1,144,000  SP 12/04

$915,000  1st loan

$500,000  2nd loan

$1,250,000  LP 2/08

I’m just guessing on the amount of the first, they had refinanced three times, pushing the 1st lender off the screen.  Wells Fargo had the second, and was the one who foreclosed – something is better than nothing?  This isn’t anything more than a big tract house with a pool on a lot that isn’t any more than 6,000sf.  Two others on street for sale.

YB: 2004,  HOA = $240, MR  $560

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718 Lynwood, Encinitas

5 br/5.5 ba,  5,405 sf

$1,212,000  SP  5/03

$1,202,500  1st loan

$462,315  2nd loan

$1,650,000 LP 2/08

At the top of the hill in Encinitas Ranch with one of the best ocean views in the area.  First escrow fell apart, but went back in pretty quick – now pending.

YB: 2003,  HOA = $127  MR = $333

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6381 Keeneland, Carlsbad

5 br/4.5 ba  5,293 sf

$1,945,000  SP 7/06

$1,299,000  LP 2/08

33% under last sale

The one we’ve all been waiting for, and listed today for a blockbuster price – submarining all the other Bressi Ranch high-dollar listings.  The owner is the same guy who has one awaiting foreclosure in La Costa Oaks too.  This will be another one of those REOs that has multiple offers, and sell over list – it is a great strategy!

YB: 2006  HOA = $193, MR = $0 – wow!

More February sales of homes whose previous sale had been since 2004 – how are prices doing?  Encinitas first, then Carmel Valley and Del Mar, and 92127 at the end:

174 Village Run E.

3 br/2 ba,   1,212 sf

$625,000  2/06

$539,900  OLP

$521,000  SP 2/08

DOM – 14 days

Former owner financed 100%, which probably had his PITI payments close to $4,500 per month for this 1,200 square footer.  Things didn’t work out, and this ended up an REO, though still not down to ‘03 prices – this sold for $440,000 in June, 2003.

YB: 1972,  HOA = $22, MR = 0

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1525 Flair Encinitas

3 br/3 ba,  1,724 sf

$715,000  2/05

$599,000 OLP

$530,000  SP 2/08

DOM – 72 days

Another REO and a nice buy in a gated community in the heart of Encinitas, but these lots are tiny - so small that listing agents rarely publicize their size.  This lot is 3,706 sf.

YB: 1985,  HOA = $85, MP = 0

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1213 Village View

4 br/3 ba,  2,394 sf

$835,500  2/05

$940,000  OLP

$850,000  SP 2/08

DOM – 113

The remarks said "thoroughly upgraded" with slate, hickory hardwood floors and tasteful custom paint.  Decent-sized yard too, the lot was 9,147 sf.

YB:  1990,  HOA = $20,  MR = 0

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540 Cole Ranch

3 br/2 ba,  1,248 sf

$980,000  2/06

$1,199,000 OLP

$920,000  SP 2/08

DOM – 65 days

A starter home for Olivenhain, with an old house and smaller (for O-hain) 11,761 sf lot.  The sales history brings back memories – $887,000 in December, 2004, and $628,000 in January 2004.

YB: 1968,  HOA & MR = 0

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273 Rain Tree

5 br/4 ba  2,826 sf

$1,300,000  11/05

$1,449,000  OLP

$1,250,000  SP 2/08

DOM – 189

In late summer I asked the first listing agent if the seller might take an offer in the 1,200,000s – she cussed and screamed, and then hung up on me.  Will they ever learn?

YB: 2003,  HOA & MR = 0

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13500 Moonflower Mdws

4 br/3 ba,  2,056 sf

$804,000  10/05

$795-$839K  OLP

$795,000  SP 2/08

DOM – 6 days

Interesting comps nearby – the 2,o07 sf REO next door closed in September for $679,000, and the 2,304 sf house across the street clsoed for $815,000 in November.

YB:  2005, HOA = $210, MR = $221

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5035 Ashley Falls

5 br/3.5 ba,  3,028 sf

$1,256,000  6/04

$1,250,000  OLP

$1,180,000  SP 2/08

DOM – 18 days

Large, flat yard with views, culdesac location.  If every seller would do this, they’d be OK – price it about where you paid for it a couple of years ago, not 10-20% higher.

YB: 1996, HOA = $0, MR = $104

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15817 Paseo Del Sur

4 br/3 ba,  2,781 sf

$713,900 OLP

$718,900 raised price

$680,900 SP 2/08

DOM – 116

This is the Cabrillo model home in Del Sur – do you think it’s a good idea to buy in an early phase of a new tract?  Take a look at these – granted, these could be in better locations, but doubt that they had more upgrades than the model: previous sales of same floor plan:  $800,000 in 2/07,   $853,000 in 10/06,   $887,000 in 10/06.

YB: 2007  HOA = $142, MR = $473

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15009 Cross Stone

4 br/3 ba,  3,072 sf

$687,000  2/04

$797,888  OLP

$780,000  2/08

DOM – 10 days

Former model home – an example of how the market was still ascending in early 2004. Not many are breaking even in 92127 who bought after the summer of 2004.

YB: 2004,  HOA = $249, MR = $572

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14216  Cmto. Lazanja

5 br/4.5 ba,  4,259 sf

$1,545,000  4/05

$1,350,000 OLP

$1,327,500  SP 2/08

DOM – 29 days

MLS remarks:

"REO. Huge lot. Very Upgraded. Banks wants to sell AS IS.  Granite, travertine, great floorplan. Not a typical REO."

YB: 2005, HOA = $425, MR = $625

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7431 Rancho CabrilloTrl

4 br/4.5 ba,  4,572 sf

$1,583,000  4/05

$1,795,000  OLP

$1,475,000  SP 2/08

DOM – 102 days

Seller was agent – have you noticed that agents seem to list their own houses a lot higher than they should?  Been like that since the beginning of time.

YB: 2005  HOA = $249, MR = $572

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Case-Shiller is out for December, what can we expect for January?  Based on the number of sales of detached homes in SD County, probably more of the same.  Here are the January closed sales, and the percentage difference from the previous year:

2004 – 1,648

2005 – 1,615  (-2%)

2006 – 1,265  (-22%)

2007 – 1,149  (-9%)

2008 -    890  (-23%)

The annual legal update at the local board of realtors was today, and Gov Hutchison, our lead CAR attorney, had a few items that are new this year:

1. Many builders have been including an extra fee to the builder for every time the house sells in the future.  That’s right – every subsequent sale after the first has a "private transfer fee" attached to it, ranging from 0.1% to 1.75% of the sales price.  Santaluz, for example, has a 0.25% tax on every sale.

From the CAR website:

Under current law, a developer can impose a private transfer fee for subsequent sales of the real property.  The developer often creates a separate entity to receive these fees and uses these fees for environmental compliance, or to mitigate ongoing costs incurred with the development of the property.  These fees must be disclosed under current law.

Effective January 1, 2008, AB 980 requires that any person or entity who will impose or has in the past imposed a private transfer fee must in order to continue to receive payment of the fee, record both the instrument creating the transfer fee and a separate notice of “Payment of Transfer Fee Required” in the county recorders office in the county where the property is located.  Private transfer fees are typically created by developers to be used for environmental compliance or to mitigate ongoing costs incurred with the development of the property. 

Lennar, plus five other builders, were found to be doing this practice by his staff.  If you are buying a house built in the last 4-8 years, make sure you read the fine print! (I’m still checking on the other five)

2.  If an investor makes an offer on a property in foreclosure, and the sellers live in the house, a special contract is needed that gives the sellers a five-day recission period.

3.  The "Anti-Escondido Law" went into effect, prohibiting any landlord from being able to screen potential tenants based on their citizenship, or lack thereof.  You can only ask to see a form of government ID.

4.  When a meeting is called by a HOA, not only do they have to notify the residents of time and date, but they also have to publish the agenda.

5.  Effective January 1, 2008, pursuant to AB 840, which was a bill sponsored by the Department of Real Estate (DRE) and supported by C.A.R., the DRE may suspend or otherwise discipline the license of any real estate broker or salesperson who commits any felony or crime “substantially related to the qualifications, functions or duties of a real estate agent”.  Prior to this law the DRE could discipline agents only for misdemeanor crimes that involved “moral turpitude”.  Now, all misdemeanors committed in California are potentially grounds for discipline against real estate licensees as long as it is related to the qualifications, functions or duties of an agent.

6.  He also noted that it is now illegal to bribe an appraiser.

The last time I saw Gov, which was a few years ago, I asked him about whether the listing agent has to present all offers.  He confirmed that they don’t - if the offer is deemed frivolous, it doesn’t have to be presented. 

If you make an offer through Klinge Realty, I’ll make sure the seller knows about it!

Here are the February same-house sales reported on the MLS of those who have resold since buying in 2004.  YB = year built, HOA = monthly homeowner’s association fee, and MR = monthly Mello-Ross fee.

3434 Rich Field

3 br/3 ba  2,165 sf

$749,000  12/05

$729,000  OLP

$660,000  SP 2/08

DOM – 33 days

This was a former model home that backed to open space. 

YB = 2005, HOA = $105, MR = $231.

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6346 Paseo Descanso

3 br/2 ba  2,109 sf

$724,000  6/04

$749,000  OLP

$680,000  SP  2/08

DOM – 32 days

The sellers did pretty good to get $322/sf with San Marcos schools – benefitted from being a one-story house. 

YB = 2002,  HOA = $80, MR = $212

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6236 Dartington

4 br/3.5 ba,  2,693 sf

$671,500  6/06

$739,000  OLP

$680,000  SP 2/08

DOM – 62 days

The owner/agent dodged a bullet in this Bressi Ranch home, being able to sell it for more than he paid. 

YB = 2006, HOA =$193, MR =$216

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6426 Torreyanna

3 br/2 ba   1,771 sf

$810,000  6/06

$649,000  OLP

$665,000  SP  2/08

DOM – 8 days

It was reported here that this was a good deal, the lender in first position, whose loan amount was $648,000, had foreclosed on the 100%-financed seller.  Win-win for FIRST lender, agents, and the new buyer who paid cash, too bad for foreclosed owner and second lender. 

YB = 2002, HOA = $72, MR = $67

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7705 Morada

3 br/2 ba,  2,356 sf

$615,000   5/04

$735,000  OLP

$715,000  SP 2/08

DOM – 39 days

Nice deal for those who like the older homes with no monthly fees – buy one like this that was just renovated.  The seller probably lost money in the end, after installing new kitchen baths, travertine, granite, etc.  If you are thinking of buying, these are a primary target, though one beef is that they still have 8ft. ceilings. 

YB = 1975, HOA & MR = 0

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2340 Paseo Saucedal

4 br/3 ba,  2,848 sf

$775,000  6/07

$845,000  OLP

$798,000  SP 2/08

DOM – 120 days

Prime La Costa Valley, though ones like this on the same street have sold in the high$900,000s in 2005.  Seller had financed 100%, so he had to bring money in, but not much if the agents worked with him. 

YB = 1999, HOA = $100, MR = $67

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3250 Maezel

5 br/3.5 ba  2,944 sf

$820,000  10/06

$839,000 OLP

$815,000  SP 2/08

DOM – 10 days

Nice-looking remodel near Carlsbad HS – walk to the football games!  Was listed in the mid-to-high $800,000s last summer. 

YB = 1958, HOA & MR = 0

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3453  Corte Selva

3 br/3.5 ba  3,369 sf

$843,000  7/05

$1,125,000  OLP

$990,000  SP 2/08

DOM – 168 days

Another example of how buyers are ignoring the sellers’ dreamy list price.  Seller brought brand new, so they had invested some, probably a good $50,000,  after the $843,000. 

YB = 2005, HOA = $231, MR = $100

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6757 Mallee

5 br/4.5 ba,  4,192 sf

$1,040,000  1/04

$1,329,000  OLP

$1,100,000  SP 2/08

DOM – 75 days

Aviara Golf views but small yard – remarks mentioned that it was appraised for refi in 2005 for $1.45 million. 

YB = 2000,  HOA = $93, MR = $49

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6801 Jade

4 br/4.5 ba,  3,779 sf

$1,181,000  8/05

$1,425,000  OLP

$1,170,000  SP 2/08

DOM – 104 days

This was a short sale purchased by a cash buyer.  Today’s buyers are solvent, and using substantial down payments. 

YB = 2005,  HOA = $250, MR = $258

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1019 Sagebrush

5 br/4.5 ba,  4,039 sf

$1,283,000  6/06

$1,750,000  OLP

$1,310,000  SP 2/08

DOM – 91 days

We’ve been waiting for the other shoe to drop in the Bay Collection – the last closed sale was $1,375,000 for 3,822 sf on Crystalline on July 17, 2007.  Then two closed this month in the $1.3s.

YB = 2006, HOA = $143,  MR = $78

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7056 Heron Circle

5 br/4.5 ba,  4,203 sf

$1,245,000  12/05

$1,419,000  OLP

$1,325,000  SP  2/08

DOM = 79 days

The other sale in the BC – this was top of the hill on the prime view side.  Hopefully it will send a message to the other five for sale in the Bay Collection that are listed at $1.95 million or higher. 

YB = 2005,  HOA = $137,  MR = $76

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1613 Starling

4 br/3.5 ba, 3,510 sf

$985,000  5/03

$1,450,000  OLP

$1,365,000  SP 2/08

DOM – 123 days

Not sure what makes this worth so much – doesn’t back to the golf course, it backs to Batiquitos Drive, and the pictures didn’t look spectacular.  The last sale was $1,395,000 in October of a 3,395 sf house that did back to the Aviara golf course.  Buyer used  37% down payment though, and left an out-of-state address – maybe just a second home?  This was one of the first tracts to have Mello-Roos in the area. 

YB 1992,  HOA = $76, MR = $47

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3766 Saddle

4 br/2.5 ba,  2,726 sf

$770,000  SP  2/05

$729,000  SP  1/07

$775,000  OLP

$650,000  SP  2/08

This was at the end of the cul-de-sac and backed to the canyon, with open space for miles.  It had real hardwood floors but needed new carpet in about half the house.  I represented the buyers, and we figured out on our first visit that the sellers were getting divorced, so we lowballed with a $610,000 offer, and held out for $650,000.  Looking at the rest of these, I think we did pretty good to get a minor fixer in a premium location for $120,000 less than the 2005 sales price.  The buyers will spend $5,000 and have a great home for years to come! 

DOM = 128, YB = 2001, HOA = $86,  MR= $67

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Superior homes in premium locations at still selling for close to what they’ve been selling for in recent years, but note one of the biggest hurdles – the OLP, original list price.  Look where some of these started, price-wise – if sellers (and agents) would get off their high horse and quit complaining about how bad the market is, they could get a decent price for their house and be down the road.

The newer tract homes are being hit pretty hard by short sales and foreclosures. The builders’ in-house mortgage company, who has no legal obligation to protect the borrowers, had incentive to jam buyers with any loan possible to keep sales afloat.

As a result, we are seeing homeowners fleeing, especially those who bought and/or borrowed in 2005. While the high payments driven by exotic financing are the primary causes for the foreclosures/short sales, the problem is further exacerbated by the outrageous HOA and Mello-Roos fees. Don’t be surprised if the tracts built around 2005 end up having some of the worst foreclosures totals, and furthest drops in values.

Here is the chart of HOA & Mello-Roos fees, and the number of active listings that are REOs/Short Sales:

My general rule-of-thumb is that buyers will tolerate HOA and Mello-Roos fees that are under $200/month, combined – above that, and the sales price better be very attractive.

In tract neighborhoods, the house values are married to the comps, because they are so similar. When one takes a hit on value, so do all the neighbors. Add in the high HOA fees and Mello-Roos and you can figure that the values in the newer tracts are likely to get hit harder and longer than the older neighborhoods. When it comes to buying, the more unique, the better!

None of the government interventions are fixing the real estate market.  The problem is that the cost of homeownership needs to be more reasonable, so more can afford to buy.  Raising the conforming limits was thought to be a way to have higher loan amounts be funded at lower rates, but the way it looks it’ll only be a savings of 1/4% or so, if that.  Whoop-de-doo.

Here’s my idea:

Have FHA loans be funded at a 30-year fixed rate of 4.75%.

Don’t change anything else – leave the max loan amount at $362,790 (in high-priced areas), make buyers qualify by normal FHA standards, and use at least a 3% down payment. 

These loans have always been funded by private lenders, and insured by FHA.  The buyers pay a premium for the insurance, so hopefully in the end the actual cost could be limited to the subsidy needed to get the rate down to 4.75%.  If the government is looking to spend billions to help with the problem, this is where they should spend it – buying down the 30-year fixed-rate.

Other points of the plan:

This plan doesn’t bail out the sellers nor lenders.  Buyers are still going to be critical about the price they pay, because 4.75% makes buying a house a little cheaper, but not cheap.  Sellers are going to have to keep lowering their price to be able to sell, and lenders are going to have plenty of short sales and foreclosures to liquidate.

Purchase-loans only, no refinances. It is to spur home-buying activity only, and really aims at the low-end starter market, which will trickle up over time.  Anyone who qualifies is eligble, so those buying above the typical $375,000 price range can use their larger down payment - which should create a positive impact in the $400,000 to $600,000 price ranges as well.

It would be beneficial for the government to reward prudent behavior, instead of trying to bail out greedy banks and buyers.  For those current homeowners who are buried, they can go get back in line – FHA will fund a loan three years after a foreclosure.

Put a five-year prepayment penalty on these to inhibit the flipper mentality, and help fund the program.  Buyers need to get back to thinking of real estate in traditional terms, that a house goes up in value over time – a long time – and to buy one to live in, not get rich quick.

The government needs to go all the way with this plan – don’t pull up short at 5.25% or 5.50%.  It needs to be a big benefit to make a difference.

For those who insist on no bailouts, and let the free market find its way, consider this:

1. The government is going to keep meddling in this problem.

2.  If their meddling helps the prudent ones, while letting the market to continue to correct, price-wise, isn’t that the best option?

3.  Hopefully the Fed would quit thinking about lowering the Fed-funds rate to help housing.  This plan puts the fix directly on the main housing issue – affordability.

What do you think?

We’re about half way through the first quarter of 2008 (once you factor in the late-reporters), and last year’s total closings between January 1 and February 15th were 1,693.  Today’s count of detached closed sales in San Diego County is 1,398, which is a 17% drop from 2007. 

Who will win the golf tickets?

Here are the entries:

We had a request from golfproz to include more golf-related stuff.

The caption in the MLS:

"Green inspired by the famous 13th hole at Augusta"

Is this what Augusta looks like?

For those of you who like a good game of football and want to contribute to a great cause, check out the Hero Bowl 2 tomorrow in Carmel Valley.  The Enforcers are part of a nationwide, non-profit football league.

From their website:

The League consists of law enforcement and firefighter teams from around the United States. The NPSFL is a full contact football league that follows NCAA rules and each NPSFL player must be a full time law enforcement officer or firefighter. Each team plays a four game league schedule each season and chooses which charitable group to sponsor. We are very excited about the opportunity to enter the National League and participate for the Injured Marine Semper Fi Fund, as well as represent the citizens of San Diego County at a national level of competition.

The Injured Marine Semper Fi Fund is a particularly worthy and noble charity, here is their introduction from their website:

The Injured Marine Semper Fi Fund provides financial assistance and quality of life solutions to:

• Marines and Sailors injured in combat, training, or with life threatening illnesses
• Their families- to help defray the expenses incurred during hospitalization, rehabilitation, and recovery
• Other service members injured while in direct support of Marine units and their families
• Help with expenses associated with the purchase of specialized equipment, adaptive vans or vehicles, and handicap home purchases and/or modifications

Established in May 2004, the Injured Marine Semper Fi Fund is a nonprofit 501 (c) 3 organization that has provided over 6,000 grants totaling over $16 million in assistance to our Nation’s wounded heroes and families. This assistance helps with immediate financial needs and perpetuating needs, such as modified transportation, home modifications, and specialized equipment.

If you can make to the game tomorrow at 5pm, get there a little early, because they are hoping for a sell-out.  If you can’t make it, give the semperfifund a click and send some dough their way.

Here are their websites:

www.sandiegoenforcers.com

www.semperfifund.org