San Diego Residential Real Estate Median price of homes in San Diego increased 23.9 percent from a year ago!

Hot San Diego Real Estate News Update!

The median price of an existing home in San Diego was $580,220 as of Jan. 2005, a 23.9 percent increase over the average price of $468,450 in Jan. of last year, the California Association of Realtors (C.A.R.) reported Friday.

Encinitas had the seventh highest median home price — $729,500 — in California during Jan. 2005. No other San Diego County region was in the top 10.
Overall, the median price of an existing, single-family detached home in California during Jan. 2005 was $485,700, a 20.1 percent increase over the $404,460 median a year earlier, C.A.R. reported. The Jan. 2005 median price increased 2.4 percent compared with a $474,280 median price in Dec.
“We’re out of the starting gate with a bang. Both sales and the median price of a home hit new records in January as homebuyers continued to flood the market,” said Jim Hamilton, C.A.R.’s president, in a written statement. “Although the inventory of homes for sale increased in January, it’s still low by historic standards. Buyers are taking a little more time before making an offer compared with last year, in part because the specter of significant increases in mortgage interest rates has diminished.”
The report found that the median number of days it took to sell a single-family home was 48 days in Jan. 2005, compared with 27 days for the same period a year ago. Statewide home resale activity increased 7.1 percent from the 615,660 sales pace recorded in Jan. 2004.
Closed escrow sales of existing, single-family homes in California totaled 659,410 in Jan. at a seasonally adjusted annualized rate, according to C.A.R. figures from more than 90 local realtor associations statewide.
“While we expect sales for all of 2005 to be below 2004’s record level, demand for housing in California continues to outstrip supply, which is reflected by the dramatic median price appreciation experienced by every region in the state,” said Leslie Appleton-Young, C.A.R. vice president and chief economist, in a written statement. “Seven regions posted median price gains in excess of 30 percent compared with a year ago.”
Los Angeles-based California Association of REALTORS is one of the largest state trade organizations in the United States, with more than 160,000 members dedicated to the advancement of professionalism in real estate. offers FREE Buyers Representation

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Hot San Diego Real Estate Market Update! Median price of homes in San Diego increased 23.9 percent from a year ago

The median price of an existing home in San Diego was $580,220 as of Jan. 2005, a 23.9 percent increase over the average price of $468,450 in Jan. of last year, the California Association of Realtors (C.A.R.) reported Friday

Home Buyers are in a great market in San Diego!

The San Diego Real Estate Market at the end of January we were seeing the market start to pick up again after a slow December. The nicer homes which are priced well are selling much quicker and only staying on the market for short time frames. Homes that are in poor condition or are overpriced tend to be staying on the market a while longer. We are still advising home buyers to move quickly when they see a home that they like. This is especially important with interest rates at near low levels. The market is fairly balanced for both home buyers and sellers. For the San Diego Home Buyers in the market the time is perfect!

MARKET NEWS FLASH – Government Proposes New Regulations To Combat Mortgage Fraud!

The Office of Federal Housing Enterprise Oversight (OFHEO) is proposing a regulation to require Fannie Mae and Freddie Mac to report mortgage fraud or possible mortgage fraud to OFHEO in a timely fashion. The regulation would also require the Enterprises to establish internal controls, procedures and training programs to detect and report mortgage fraud.

San Diego Current Market Conditions

San Diego Home Sales Market conditions are stabilizing from the strong sellers market of a few months ago where multiple offers and offers over the market value were common. Much of the San Diego Real Estate activity a few months ago was based upon inventory levels and not enough homes to satisfy the market needs.

From a San Diego Real Estate Agents perspective: the current inventory levels are at a point to meet the demand and most sellers can expect to have their home on the market for 30 to 60 days before they receive an offer. While prices are still very strong there is more room to negotiate and to purchase a home for a fair price. These conditions are very good for buyers since they will have more choices and can make an offer on the home that best suits there needs. Also, with the current trend on low interest rates the market will continue to be strong seeing double digit appreciation rates making home ownership one of the best investments you can make!

San Diego Real Estate Market Sees a Slight Change


San Diego’s Real Estate Market see’s slight change. The median for all houses in county sinks to $478,000. The decline was due to prices paid for new housing, DataQuick said. Prices paid for resale single-family homes in January set a record median of $530,000. Data Quick said the January month-over-month drop was the largest since January 2002. Yet the median last month was 20.7% ahead of the $396,000 posted in January 2004. (January and February are the worst months to read trends into or a sign of what is coming.) With a bigger inventory, it is talking longer to sell a home, on average 61 days, and even longer depending on the condition, location, amenities and desirability of the home. This is a perfect time for buyers to get into the “American Dream” of home ownership. With all the Real Estate Tax incentives don’t miss out on this Current Buyers Market!


Hot Real Estate Tax News

Congress has just toted up the billions in taxes America’s homeowners will save this year through various federal housing writeoffs and credits. The number is huge and the underlying message is loud and clear: If you don’t own a home, you are missing out on Congress’s most generous lump of tax goodies served up to any category of individual taxpayers.

10 most frequently forgotten Real Estate Tax deductions

10 most frequently forgotten real estate tax deductions:

Deduct those points. If you bought your principal residence last year and if you paid the lender a loan fee, usually called points, that fee is tax deductible as itemized interest on Schedule A of your return. But don’t count on your lender to include this fee on the IRS Form 1098 that reports annual interest paid. Some lenders report only your monthly interest payments, neglecting to remind you of the points you paid. (A point is 1 percent of the mortgage amount.) Your best proof that you paid this fee is the closing statement you received when the transaction was recorded. Refinance fees. If you refinanced your mortgage or obtained another type of real estate loan, any loan fee or points you paid can be deducted only over the life of the mortgage. Suppose you paid a $2,000 fee to refinance your 30-year mortgage. Rather than deduct the full $2,000, as you could when buying the house, all you can deduct is $66.67 annually for the next 30 years. For this reason, when refinancing a home mortgage, many borrowers get a so-called no-cost mortgage with no points. The general rule is that for each point paid, the interest rate should drop by one-eighth percentage point. To avoid the hassle of remembering to deduct the small loan fee amount each year for 15 or 30 years, many who refinance prefer to pay a slightly higher interest rate. Another reason to avoid paying points when refinancing is that most home loans are paid off in less than 10 years because the property is sold or refinanced again. For serial refinancers: If you refinanced a previously refinanced home loan, don’t forget to deduct any remaining loan fees from the first refi in the tax year of the second refi. Suppose you refinanced in 2004 and had $1,500 in undeducted loan fees from a prior refinance. That $1,500 is fully deductible as itemized interest on your 2004 return. Prepayment payback: Many home loans have penalties if they are paid off early, usually within the first three to five years. If you paid a prepayment penalty because you sold the home or refinanced, it is deductible as itemized interest. Money for moving: Whether you are a renter or a homeowner, you may qualify for the moving-cost deduction if you changed both your job site and your residence but were not reimbursed for household moving costs. This can be a big deduction, especially if you made a major cross-country move to take a new job. Use IRS Form 3903 to calculate and claim this deduction. To qualify, the distance from your old residence to your new job must be at least 50 miles farther from your old home than was your old job location. Suppose your old home was 3 miles from your old job location. If your new job site is at least 53 miles from your old home, you qualify. After you pass the distance test, you must be employed in the vicinity of your new job at least 39 weeks of the year. You need not work for the same employer. Either spouse can qualify. If you are self-employed, however, you must work in the vicinity of your new worksite at least 78 weeks during the next 24 months.
Casualty losses: If you suffered a sudden, unusual or unexpected loss, such as fire, flood, hurricane, tornado, earthquake, mudslide, theft, accident, water damage, riot, embezzlement, vandalism, snow, rain or ice storm but were not paid by insurance or other reimbursement, you may be able to claim a casualty loss deduction. Slow losses are not deductible. They include termite damage, dry rot, dry well, rust, corrosion, plant loss, moth damage, Dutch elm disease, erosion and mold. The casualty loss must exceed 10 percent of your adjusted gross income, plus a $100 “floor” per casualty event. Use IRS Form 4684 to calculate your deducible amount.
You will need proof of loss, such as your uninsured repair cost. Replacement estimates alone usually are not enough if you didn’t repair or replace. Property taxes: An easily forgotten deduction in the year of a home sale is your share of the pro-rated property taxes.
This deduction is usually paid to the local tax collector as part of the sale closing, so you might not have a canceled check or other proof of payment. Your closing settlement statement should show your pro-rated property tax share, based on the number of days you owned your home during the tax year. Pro-rated interest: If you bought your home in 2004 and assumed its existing mortgage, you are entitled to deduct your pro-rated interest share for the month the sale closed. Again, the buyer and seller’s shares are usually calculated on their closing statements even if the other party made the actual interest payment to the mortgage lender.
Pay now, save later: Millions of homeowners prepay their property taxes and mortgage payments each December even though these payments are not due until the next year.
The reason is these payments are deductible in the year they are made. Not all property tax collectors allow early payments, but many do. If you prepaid your January mortgage payment in late December, be sure your lender received the payment and included it on your IRS Form 1098. Ground rent: If your home is on leased land and if you have an option to buy that land, your ground rent payments may be deductible as itemized interest.
The IRS permits homeowners living on leased land to deduct their ground rent if these four conditions are met:
— The ground lease must be for at least 15 years, including renewal periods.
— The lease must be freely assignable to the buyer of your residence.
— The land owner’s interest must be primarily a security interest (like a mortgage).
— You have a current or future option to buy the land.
If your situation does not meet all four of these tests, your ground rent payments are not deductible. Although rarely forgotten, additional homeowner deductions include property taxes and mortgage interest. However, payments into an escrow impound account with a lender do not become deductible until the loan servicer remits the money to the tax collector. Most lenders include the deductible property tax and mortgage interest amounts on the borrower’s annual IRS Form 1098. Of course, if you pay your property taxes directly, without an escrow account, then your lender won’t include that amount on your Form 1098. If you were among the more than 12 million home buyers and sellers last year, you probably paid additional closing costs such as transfer tax, recording fees, escrow, title or attorney fees and other non-deductible expenses. Home buyers should add these nondeductible expenses to their purchase price cost basis for the house or condo. Sellers should subtract them as sales expenses from the home’s gross sales price. For full details on these and other homeowner and real estate investor tax benefits, consult your tax adviser. Reprints of the Robert Bruss series, “2005 Realty Tax Tips — Eight Chapters of Tax Savings for Homeowners and Investors,” are available for $4 from Robert Bruss, 251 Park Road, Burlingame, CA 94010 or by credit card at (800) 736-1736 or by Internet download at