The type and method of financing should indicate something about the buyers’ intentions – if they are putting down a boatload of money, they’re probably planning to stay a while. As we’ve seen all year, the big down payments are the preference in North SD County Coastal.
Here’s a check of the last 100 SFR sales in Carlsbad, Encinitas, Cardiff, Solana Beach, Del Mar, and Carmel Valley (omitting RSF and LJ) that occured between November 12th and December 1st:
DOWN PAYMENT AMOUNTS:
0-5%: 12
6-19%: 6
20%: 23
25%: 10
30%: 10
40+%: 26
Cash: 13
Total: 100
Eighty-two percent of the buyers used at least a 20% down, and nearly half (49%) used a down payment of 30% or more.
LOAN TYPES:
VA: 1
FHA: 11
Conv: 75
Cash: 13
You can’t say the govies are carrying the SD North County Coastal market.
OWNER-OCCUPIED vs. NON-OWNER
O/O: 75
N/O/O – local: 18
N/O/O – out of state: 7
Based on their mailing address on the tax rolls.
SELLERS SOLD FOR MORE OR LESS THAN THEY PAID
More: 70
Less: 30
The average drop in price for the 30 who sold for less was $144,000, after throwing out the high and low number.
OF THE 30 THAT LOST, YEAR PURCHASED:
2004: 4
2005: 16
2006: 5
2007: 3
2008: 2
You can’t really say we’re back to 2003 prices currently.
TYPE OF SALE
REO: 9
SS: 11
Reg: 80
It’ll be interesting to see how these split this time next year!
Does this mean “It’s a Great Time to Buy”…?
Brought to you by Larry Yunowski…
It would be interesting to see the year of purchase for the 70 that sold for more.
And maybe use inflation calculation to see if we are back to 2003 price or not.
My guess is early 2004 or late 2003 price after inflation.
Today I found out that one of my friends has to leave the house they’re living in because the deadbeat “homeowner” wasn’t paying their mortgage but was pocketing they rent.
Now I know people on both sides of fence…
– Lazy Deadbeats that are living in their house for free
– Hard working young families that are kicked out of the house their renting because the “homeowner” is a deadbeat
It makes me sad. Banks are sitting on properties they know are going to be a huge loss and foreclosing the ones they know will make a profit or end even. (which I understand from a business perspective)
If TARP wasn’t created banks wouldn’t be able to selectively list properties.
shadash, we had 3 of those deadbeat owner houses on my block over the past 3 years. First one was two houses owned by an “investor” who rented them out and stopped paying on the note. I don’t know exactly how long he pocketed the cash, but when the renters got the bank notice and figured out what was going on, one completely trashed the house. Broke all the windows, everything. The place sat boarded up for months until a new owner took possession and cleaned it up.
Then, my next door neighbor pulled the same trick. He failed at selling in 2007 and wouldn’t drop his asking price. There are two units on the lot, so he rented both of them out and left the country. I don’t know for certain, but I’ll bet he stopped paying the bank as soon as they went back to the Philippines. Eventually the renters found out about the trustee sale and did a little trashing themselves.
There is plenty of sleazy behavior to go around these days, it seems. And at all social and financial levels.
yep, it happened to me. I got NOD paperwork tacked to the door of the condo I was renting in Oceanside only a couple of months after moving in. What a nightmare. I don’t think the owner was making any payments. I had more class than to trash the place, but it was tempting when they wouldn’t give me my deposit back.
Hmm, these numbers might suggest the men are being separated from the boys. I’d be curious, though, to know how many of those 100 fall in the price range of being FHA eligible. It would also be interesting to know if all the FHA loans were for <20% down.
“You can’t say the govies are carrying the SD North County Coastal market.”
Precisely–FHA bashers bash on something else please.
Above comment form me–soryy for the anonymous post.
I don’t know if I would agree with this statement. Considering some issues I came across when helping friend/relatives try to re-fi existing houses to a lower mortgage rate, I would say that using a large amount of money is a good way to ‘get the deal done’. Whether you are an investor or long term-buy-hold-live in, you will generally have to come to the table with a good amount of cash. The faster you want the deal done, the more cash. The rent-investor could then get some of their cash out at a later date through a second mortgage.
Examples (all LTVs are based on current appraisal):
1) Existing mortgage is a 5yr fixed @ 5.875%. Fixed period about to end and go variable. Loan has a pre-payment penalty. Person is a high FICO. LTV 90%. Bank will not let them out of the prepay to refi even though there are only 3 months left. Lowest mortgage rate offered was 5.6%.
2) Existing mortgage is variable @ 5.3%. LTV is 18.75% on an $800k+ property. High FICO. Best offer was 4.95% on 30yr fixed. When we tried to get financing through, the mortgage rep kept trying to tack things on.. ie, roll financing into mortgage, cash back etc. All these allow the bank to increase the interest rate on the whole loan. The mortgage rep was very slow in getting back to us. Fortunately the original mortgage holder found out we were trying to refi and countered @ 4.675%, 30yr Fixed.
What I saw in my admittedly limited experience was that banks were being overly cautious and that the more cash or better effective LTV you had, the better your mortgage negotiating leverage and the quicker they will respond.
Moral of the story: If you want to get the deal done fast, better bring cash
Off the topic–Does anyone know if they are Bidding at the Trustee Sale in this type of weather???
FHA’s are going to blow up… just wait.
The data looks overwhelmingly like more traditional type sales than foreclosure related. Regular sellers are selling for more than they paid to buyers putting down a lot of cash and using conventional loans for homes to live in and raise their families. From this perspective it appears North County Coastal is a great place to invest in real estate. That’s what I’m trying to do (not easy); and believe me, it’s a fiercely competitive market for the better houses in popular school districts!
http://www.10news.com/news/21870431/detail.html
old friends in court
Suzy left this comment here at bubbleinfo earlier today:
Dear commentators and curiosity seekers, I appreciate all your entertaining comments. I can laugh now, but it really is a serious matter when a private citizen can be arrested and held in jail for 3 days for merely requesting and defending their right to see genuine charges against them. My insistence was not for fun or just to make a point. Both the bank and the police involved KNOW that I removed all the valuables to protect them (when they would not), not steal them. All were promptly returned carefully wrapped and labeled with spreadsheets and photographs documenting how to put everything back together. My intent was very clear to all involved. Hence why the charges are ‘not genuine’. So why would I go out of my way to protect something that was no longer mine? Watch my video to appreciate the magic and love that went into this creation and ask yourself would you sit back and watch it get destroyed by vandals?
http://www.go-beyond-vision.com/vivienda.html
-Suzy
Delusional + stupid = Not a good person to give a million dollar plus loan to.
But, the video was beautiful if she could fill the house with paying patients it might work out.
Um, Suzy, those items no longer belonged to you. You had no right to do anything with them. If the owner (the bank) didn’t want to spend the money to “protect” them, you had no legal right to steal the items from them. And that’s what removing items you don’t own is called-it’s called stealing.
I’m going to defend Suzy on this one. Though what she did might not be technically “legal,” I can see why she did it the way she explained the situation. The whole story is very sad, IMHO.
BTW, Suzy is NOT “stupid.” I don’t know her, but have followed this story for a while. IIRC, she’s a physicist with a few patents under her belt, in addition to a number of companies that she developed and later sold off. Just going by memory, but perhaps Suzy can correct me if I’m wrong.
If lying was a color, it would be the new Black.
…’There is plenty of sleazy behavior to go around these days, it seems. And at all social and financial levels’…
Ever notice how moral obligations and the fear of social stigma is still prevalent in the majority of society. Those two characteristics are what keeps underwater homeowners paying their mortgage rather than ‘walking away’. Yet, the exact opposite is true in business where certain institutions are encouraged to do the opposite of what is morally right.
CA Renter, you are giving Suzy too much credit. There was a certain window when anyone could get a patent. There were also many companies developed and sold to investors/companies when the corks were flying and the champagne flowing. Those days are over – at least for the cycle.
That complex is completely overkill and who needs to go to Vivienda to discover and except the truth and experience a full awakening.