Noah Grassi noahgrassi@remax.net www.realestatenoah.com In This Issue: July 2010 Market Update Deals of the Month 4 Discount Money Savers! Monthly Trivia- Free iPhone 4 World Cup Winner YouTube Clip of The Month- Samba Dancing Baby Calendar of Events SD Housing Prices Past Newsletters Have A Question? Click here to send me an email! Pass The Knowledge! Pass my newsletter on! San Diego Market Report- Detached Homes Median Sales Price: May 2010 % Change Central San Diego $380,500 +12.74% East County $319,500 +7.12% North County Inland $410,000 +18.84 North County Coastal $540,000 +33.33 South County $342,000 +14.17 Real Estate Market Update: iPhone 4 Giveaway! See World Cup Section Below! New Website: MLS Mapping Property Seach! www.realestatenoah.com Median sales prices are up big over this same time last year but before you jump into the real estate market, let’s ask what caused the big upswing? The Federal First Time Home Buyer Tax Credit had a contract deadline date of April 30th, 2010. So May saw the closings that resulted from a large number of homes being put under contract in March/April to meet this deadline. I wouldn’t expect such dramatic increases over last year to continue during the June statistics. With that said, it is still a great buying climate: 1) Interest Rates are extremely low…many clients are locking 30 year fixed loans with interest rates in the mid to high 4% range…an awesome rate. 2) The California State Tax credit is still around but funds are running low. This applies to both first time home buyers purchasing re-sale and new homes, as well as move-up buyers, buying brand new homes only. Up to $10,000 will be paid out over 3 years. The funds for the first time home buyers ($100 million set aside by the CA government) are set to potentially be fully used up by next month. 3) Check the graph below…there are signs that the worst point in the market might be behind us. 4) Inventory is strong, the sun is shining (as soon as June Gloom ends) and I am ready to help!

Deals Of The Month- San Diego! Oceanfront- Mission Beach, 92109! 702-704 Seagrit Ct. Traditional sale at $1,995,000! 2 story, 2 units, 5 bedrooms total! 58 Feet of boardwalk in North Mission Beach! Remodel, tear down, or live the dream! Huge vacation rental potential! Click here to map this property 48 days on the market and counting…I live right next door if you need a property manager There are some $4-7million dollar listings with similar ocean frontage in this area. Property currently set as a duplex but could be combined into one home. Downtown San Diego- Gaslamp District! 777 6th Ave. #434, 92101! Asking $169,900! 1BR/1BA, 544 sq ft. Built in 2005. Loft Style. Heart of Downtown location on 6th and F St. Low Monthly HOA dues at $266. In unit laundry, secured building. Click here to map this property Corporate owned…similar to a bank owned foreclosure. Great location and top floor of the complex but no assigned parking with this unit. Options for parking include: renting a space from another unit or monthly rental from parking garage…runs between $150-$300/month. Bank owned foreclosure! 3550 Lebon Drive, San Diego, 92122- UTC! Have a child attending UCSD this Fall? Asking $280,000! 2BR/2BA, 956 sq. ft., built in 2006. Complex: Villa Vicenza Click here to map this property Newer building, convenient location to UCSD, shopping, beach, freeways. Monthly HOA dues at $321 includes pool, gym, spa, 2 parking spots, trash, water and building maintenance. Mira Mesa- Bank Owned Foreclosure! Listed 9 days ago for $319,900!! 10865 Parkdale Ave, 92126 3Br/2Ba, 1,275 sq. ft. detached home! Located in the western part of Mira Mesa- near UCSD, mall and Sorrento Valley (Tech area) Click here to map this property Lots of my clients ask me about affordable detached housing in Central San Diego that doesn’t have any Mello Roos tax or HOA payments. Mira Mesa is a great match for this type of buyer or investor. Central location, great entry level housing and no extra monthly fees/costs.

Tough times- check out these local money savers! Some of these deals are also available outside of San Diego! Daily Deal from SignonSandiego.com A daily email arrives each morning with the offer for the day. It typically is around 50% off the normal price. Services include restaurants, bars, spa/massage, dental, chiropractor, outdoor activities, etc. Just click the link below and then look for the orange box on the right hand side to enter your email. I have bought about 5 deals from this site! Click here to enter your email Living Social- Your Daily San Diego Deal Same set-up: a daily email arrives each morning with the offer for the day. It typically is around 50% off the normal price. Services include restaurants, bars, spa/massage, dental, chiropractor, outdoor activities, etc. Just click the link below and enter your email in the white box towards the top of the page! My local bar/restaurant Sneak Joint was featured on here…I got $60 of food for $30! Click here to enter your email Groupon- Daily Deals on the Best in San Diego This one can link through your facebook or send you a daily email with the offer for the day. It typically is around 50% off the normal price. Services include restaurants, bars, spa/massage, dental, chiropractor, outdoor activities, etc. Just click the link below to go to the sign up screen. I have purchased numerous deals from this one as well! Click here to sign up www.alwayshalfprice.com Click here to sign up 2010 FIFA World Cup! The 2010 FIFA World Cup from South Africa is down to the final 8 teams: Netherlands vs Brazil Uruguay vs Ghana Argentina vs Germany Paraguay vs Spain Email me by 7/1/2010- Thursday night of this week: -The winner of the World Cup -The score of the final game (used as a tiebreaker only if needed) !!!!!Free iPhone 4 !!!!!!!!!!! Quarter finals start on Friday am so get your picks in by Thursday night of this week. EVERYBODY RECEIVING THIS NEWSLETTER IS ELIGIBLE TO PARTICIPATE! Email me your World Cup winner and guess the score of the final game. Send by 7/01/10. Last newsletter had no winner since nobody picked the Duke as the 2010 NCAA Basketball winners. So this month, I am making it a BIG PRIZE- a new iPhone 4! If you don’t have AT&T, then you can give it as a gift or I will sell if for you on ebay! Jokes of the Month: *Someone stole all my credit cards but I won’t be reporting it. The thief spends less than my wife did. * We always hold hands. If I let go, she shops. * I just got back from a pleasure trip. I took my mother-in-law to the airport. *I’ve been in love with the same woman for 49 years! If my wife ever finds out, she’ll kill me!

YouTube Clip of The Month -Samba Dancing Baby from Brazil! I have never claimed to be a good dancer but I would like to think I could dance circles around a 2 year old baby…guess again.

Calendar of Events Upcoming Events: Independence Day July 4th Locations: Click the link below for all the firework locations! Info: www.sandiegonewnetwork.com San Diego County Fair July 5th- Last Day! Locations: Del Mar Fairgrounds Info: www.sdfair.com Temecula Valley International Jazz Festival 3 day festival at the Temecula Valley Cultural Arts & Music Center July 9th-11th Info: www.musiciansworkshop.org Over the Line Tournament July 10-11, July 17-18 Locations: Fiesta Island, Mission Bay Info: www.ombac.org Shark Week July 17th-23rd Location: Birch Aquarium Info: www.aquarium.ucsd.edu Del Mar Racetrack Opening Day Wednesday July 21st Location: Del Mar Racetrack Info: www.dmtc.com Comic-Con International July 22nd-25th Location: San Diego Convention Center Info: www.comic-con.org San Diego Yacht & Boat Show July 22nd-25th Location: Sheraton Hotel & Marina, Harbor Island Info: www.sandiegoyachtandboatshow.com San Diego Median Home Price Click this image below to see a graph of San Diego County median home price from September 2005 to March 2010: Past Newsletters Want to see past newsletters? Click On the Issue You Want To View: March 2010 December 2009 May 2009 March 2009 January 2009 December 2008 November 2008 September 2008 July 2008 June 2008 April 2008 March 2008

noahgrassi@remax.net |  Re/Max Coastal Properties |  (858) 353-0497 Information deemed reliable but not guaranteed. Properties may be listings from other agents in San Diego. To unsubscribe to this free newsletter, please: Click here for removal.

20,000 qualifying buyers…but the real question is how long will it take for 20,000 buyers to pass through the purchasing process? The industry has seen numerous buyers delay closings to take advantage of these tax credits. So we should see a higher amount of buyers concentrated in a shorter period of time.

Below is some data from the California Franchise Tax Board about the remaining amount left for the first time home buyer tax credit (not the one to do with new homes bought by repeat buyers or first timers):

Estimated applications received for First-Time Buyer Credit as of 05/13/10 (Updated 05/13/10)

The figures shown below are only estimates, based on small samples. The numbers are overstated as there will be duplicate, revised, and invalid applications included as we have not verified any of the applications. These estimates are only provided to give a general idea of the number of applications received and the amount requested for the First-Time Buyer Credit. We are showing 57% of the estimated requested credit since the $100 million cap will only be reduced by 57% of the credit allocated to the buyer. The amounts do not reflect actual amounts which will be allocated. These estimates will be updated each Thursday until we are sure that we have received more than enough applications to allocate the full $100 million. Once we determine that we have received sufficient applications to allocate the full $100 million, we will stop accepting applications for the First-Time Buyer Credit. Estimates for the New Home Credit will be provided once our computer system is completed.

-Provides a 5% tax credit, up to a $10,000 limit, to all buyers of new, never-occupied homes…investor buyers not included.
-Provides a 5% tax credit, up to a $10,000 limit, to first-time buyers of existing homes.
-Sets aside $100 million for each program, for a total of $200 million. First come, first serve basis…you need to get your application in for the credit before the funds run out.
-Requires buyers to close escrow between May 1 and Dec. 31 to qualify. New-home buyers have until Dec. 31 to sign a purchase contract, then must close escrow by Aug. 16, 2011.
-Requires buyers to live in the home for at least two years. Former credit was 3 years.
-Provides for the tax credit to be paid in thirds over a three-year period. Former credit paid in full in year 1.
-Sets no income limitations on buyers. Former credit had income limitations.
-Requires buyers to repay the tax if they fail to live in the home for two years or fail to close escrow on a new home by Aug. 16, 2011.

Email me with questions!

If you put a home under contract in April and closed in May, you could potential qualify for:

$8,000 Federal credit…needs to be under contract by the end of April 30th
$10,000 State credit…needs to close after May 1st

Email me with questions and when we talk tax, always check with a CPA!

Click here- stats are out for 2009 and it was a big year for distressed properties- short sales and REO’s aka bank owned homes. 50% of all transactions were from these two types of sales- that’s up from 38% in 2008.

For San Diego, it is very area specific…any community built between 2002-2006 usually has a very high default rate. It is simply a matter of timing…these buyers had the risky loans, little money down and were caught towards the top of the market. Very few owners were able to “ride things out” because they had no equity in their home and didn’t want to continue paying towards an asset that was 30-40% off the original value they paid (even if they were still employed and could afford the monthly payments).

You can also find REO’s and short sales in older, more established communities but these are also the areas where some normal sellers might be on the market because they have owned their home long enough that they aren’t affected by the events of the early 2000’s.

The reality is anybody selling today is a distressed sale- even if they aren’t a short sale or an REO. The market is at a low point, so if you have the option to continue to own, that would be the better long-term financial decision.

This article has 50% of all sales coming from distressed sellers in 2009 but the real number would be how many of the other 50% were “forced” to sell even if they didn’t fall into the the short sale or REO category?

Extension of Tax Credit:

1- First time home buyers- $8,000 credit
2- April 30th, 2010 deadline to be in contract
3- June 30th, 2010 deadline to close on the home
4- Credit won’t apply if you earn more than $125k per year or $225k as joint filers
5- Purchase price of home needs to be under $800k
6- $6,500 credit available to home owners that have lived in their current residence for at least 5 years…you don’t need to sell this residence to qualify. So you can move-up and hold your current residence as an investment and still qualify for the $6,500.