Real Estate news for Monday, January 2nd, 2006

Experts divided over San Diego's outlook. As San Diego County bids farewell to a five-year housing-price boom, the one question that lingers is whether the local real estate market is speeding toward a crash or gliding to a soft landing. Some national real estate experts have placed San Diego on their list of cities that can expect price drops, which hasn't happened in the local market since 1995. But those based in California are more sanguine. They acknowledge some warning signs such as expected mortgage rate increases but foresee no collapse, pointing to a healthy local economy. Across the country, economists are closely watching the county's real estate market, which defied some predictions more than a year ago by maintaining a price surge that went far beyond what many thought was possible. Now, concerns are being raised that lenders have gone too far in making mortgages easily available through a host of new products. Analysts are alert for any signs of trouble, such as an increase in mortgage defaults. Click here to read more.

Opportunity grows in slowing real estate market. Big brokerages may benefit as smaller companies sink or sell. Big real estate companies may look to get bigger in 2006, while powerful demographic trends should buoy the real estate market despite softening, say executives at some major real estate brokerage companies. Rising interest rates will affect the real estate market, though baby boomers, immigration, women-run households and the second-home market should continue to drive the strength of real estate in the coming year. Demographic trends in California and the Western United States "will bode extremely well for real estate," said Bob Moles, chairman of Intero Real Estate Services, a brokerage company based in Cupertino, Calif. Even so, it will be hard to match the market's booming performance of the past several years. "It's tough to always have a better year than the last year. We will anticipate a slight softening, primarily related to higher interest rates," he said. Click here to read more.

Real estate advice book beneficial. Planning to buy or sell a home in 2006? Then you'll benefit from the tips contained in a book recently written by a seasoned real estate industry insider. Mark Nash, a broker-associate with Coldwell Banker Residential Real Estate Inc. in Evanston, Ill., has written four books about real estate and the brokerage industry. His most recent, 1001 Tips for Buying and Selling a Home, offers advice ranging from selecting the right real estate agent (or not using an agent at all) to choosing a mortgage, obtaining a home inspection and successfully completing a real estate deal. Click here to read more.

Real estate listing requirements now more detailed. Market that favors buyers currently asks more from sellers. Today's buyers are sophisticated and they are cautious. They aren't likely to waive contingencies like they did when the market was short of inventory and hot as a pistol. Now, you can expect that your home will be carefully scrutinized before a buyer agrees to close a sale. HOME SELLER TIP: Neighbors' concerns should not be ignored. If you don't attempt to resolve these concerns before you put your home on the market, your neighbor is likely to make the issue known as soon as the sale sign goes up. Click here to read more.

Home buyers regain bargaining power. Home buyers are finally starting to catch a break. After years of soaring real-estate prices -- not to mention periodic bidding wars for third-rate properties -- inventories of homes for sale are rising in many parts of the country. As a result, some buyers are regaining long-lost bargaining power. That gives buyers in many markets more room than they have had in years to push sellers to sweeten the pot. Buyers are asking for, and often getting, concessions ranging from help in paying their closing costs to money for repairs or redecorating. And sellers in many markets -- including once-hot areas such as Phoenix, San Diego and Boston -- are finding that they can no longer just slap a price on their home and expect it to move quickly. Increasingly, they are being advised to set more realistic pricing expectations and to spruce up their property with fresh paint or some new plantings out front to stand out from the crowd. Click here to read more.

Pinched by prices. Inland families see their purchasing power weaken as living costs jump, wages don't. The median price of a home in October was $391,000 in Riverside County and $354,000 in San Bernardino County -- much higher than the national median price of $209,000. And both Inland counties rank well below Orange County in household income. The median household in Riverside County earned $47,772 in 2004, according to the U.S. Census Bureau. San Bernardino households earned slightly less, $47,221. The two counties rank No. 119 and No. 125, respectively, of the 236 surveyed nationwide. Orange County's median household income was $64,416 and San Diego County's was $51,012. But both Inland counties' median incomes exceeded that of Los Angeles County, $45,958. There are indications that executive salaries will go up in 2006, but wages at the lower end of the pay scale may remain well behind the curve. Surveys of leading firms indicate that those giving out cost-of-living increases will average 2.6 percent nationally, well below the most recent annual inflation readings. About two-thirds of firms will give raises or bonuses that are about the same as the previous year. Click here to read more.

Is reverse mortgage income taxable? Bob Bruss Q&A. A reverse mortgage will have no effect on your income taxes. You don't even need to report the income. There's a very good reason. Borrowed money is tax-free. The only time reverse mortgage could affect your financial situation would be if you were receiving SSI (supplemental security income) or Medicaid (Medi-Cal in California). If SSI or Medicaid recipients don't fully spend their reverse mortgage income each month then their benefits can be reduced. But that doesn't sound like your situation. I suggest you evaluate all three reverse mortgage plans: FHA, Fannie Mae and Financial Freedom Plan. Your eligibility amount is based on your age and your home's appraised market value. There is no personal liability. Repayment occurs only when you sell your home, permanently move out, or die. Click here to read more.

~Tina Jan~
Coldwell Banker Kivett-Teeters
1655 E. Sixth St.
Beaumont, CA 92223
Work: 951-845-5520 Ext. 105
Fax: 951-845-4916
Cell: 909-446-2666
Toll-Free: 1-877-TINAJAN
tina.jan@coldwellbanker.com
www.tinajan.com