San Diego is following a positive and upward trend when it comes to the real estate market after fifteen months of slight increases. A couple of reasons exist for the slow but stable home price increase. One is the fact that many retirees are retiring close to the San Diego’s coastline due to its sunny and warm weather. Another reason why the market is holding steady is because homes are now more affordable than ever due to special mortgage loans and rates that are favorable towards purchasers. A lot of investors are also currently buying property due to the low prices.

Professionals and experts in the field of residential real estate are guessing that the prices of homes in the county will either remain steady or possibly even increase slightly within the near future. Homes in the SD area are heading more towards a normal market whereas Orange County has a much higher percentage of distressed properties (36.4 percent versus SD’s 26.9 percent).

Actually, SD has actually made it to number three on the top ten list of most desirable markets for careful residential investors. Now would be a great chance to check out homes listed for sale in the area due to the favorable market.

When it comes to the job market, it looks as if that is heading towards a positive direction as well. For example, Christmas retail jobs for the holiday seasons are improved for 2010 versus 2009. Retail stores in the area are expecting sales figures to be much higher this year compared to last year. Tourism has also picked up during the summer months and auto sales have increased for 2010 as well.

To conclude, it appears that residential values are holding even and the economy is slowly heading towards a more favorable direction. More and more individuals are purchasing homes, even in an uncertain fiscal period of time due to special mortgage programs. If you are looking to obtain a home loan, it doesn’t get better than San Diego, a beautiful place with a gorgeous coastline, palm trees and bright blue skies.

Written by Jacqueline Star: San Diego New Homes, Chula Vista New Homes

We hear about historically low interest rates on home loans practically every week. Rates on 30-year fixed mortgages are well below 5% and still falling! Interest rates like these would have home buyers lining up to buy any available real estate in any other market. But now very few people are taking advantage of these low, low home loan rates. Why is that?

The biggest problem is that a lot of homeowners are upside down on their mortgages. Over the last few years property values have fallen significantly in every state. Many homeowners are finding that their homes are worth less now than when they bought them. Cash out refinances have exacerbated the problem, and sometimes even caused homeowners to owe more than the current value of their home.

The maximum loan amount is typicallly a percentage of a home’s current value – current value being the key word. It’s not possible for people to pay off their old loan with proceeds from a new loan with a lower balance. That’s true for a refinance or for selling one house and buying another. Unless a homeowner can come up with the cash to make up the shortfall, they’re stuck, no matter how well qualified they are.

In this economy the unemployment rate is high, but as concerning is the length of time it has been so high. Many homeowners have been out of work for an extended period of time. Many more are underemployed – working part time jobs or jobs far below their qualifications and income. In spite of this, a lot of them are making ends meet somehow. They’ve cut back on spending, stay-at-home moms have gone back to work, and they’ve started their own businesses. But they can’t show sufficient income to prove to a lender that they can make a lower mortgage payment than the one they’re making now. Changes in employment make it difficult to qualify for a loan even if the income is sufficient. Two years of steady employment in the same field is considered standard by most lenders. Borrowers who switched to a different field because they couldn’t find work in their chosen field, or borrowers who took a contract position won’t qualify until they have a two year history to show.

The standards for qualifying for a loan have become more stringent. The huge number of defaults can be traced back to lending practices that were too lenient. As a result, lending requirements have become much tougher. They want to see higher credit scores and lower debt ratios than they did years ago. The chances that a homeowner has a lot of cash in the bank and nearly perfect credit, after surviving employment problems, falling home values and other challenges, is slim.

First time buyers face all of these problems, except for being upside down on their mortgages. Unfortunately potential first time buyers with sufficient verifiable income, a hefty downpayment and great credit are in short supply. Fear of losing their jobs or of home prices falling further has detered many of those who actually are in a good position to buy a home. This isn’t a comfortable time for a beginner to take the plunge.

So those tantalizing interest rates that we keep hearing about in the news remain just out of reach. Something that’s technically true, but simultaneously too good to be true.

If you are one of those in a position to buy a new home in California, this is the time to do it. Once the market turns around, interest rates will rise quickly. San Diego new homes are sure to appreciate in the long run.

categories: real estate,finance,loans,homes,housing,economy,home loans,new home