Peter Middleton

Stop Renting and Buy a home

The fundamental reasoning is simple: While you could save your money and buy clothes, cars and maybe even college tuition outright with cash, very few people could ever hope to save enough to buy a home for cash, especially during their child-rearing years when they have the greatest need. A mortgage allows you to buy a home after having saved only a relatively small amount of its value, perhaps 5 percent or less, and to reap the financial gains as its value grows over the years.

Buy what you can afford
Choosing the right mortgage, however, can be a make-or-break decision for your overall financial picture. Just as the home is the greatest asset for most people, their mortgage payment is usually their biggest monthly bill, so you need to shop carefully for the right one.

Judith Shine, a Certified Financial Planner in Lone Tree, Colo., advises borrowers to look at all types of loans and to choose the one with specific provisions that are most closely tailored to their financial situation.

"A mortgage is an expensive purchase and people don't see it that way. They see it as a commodity, and it's as far away from a commodity as it can be."

For example, she likes to look for adjustable-rate mortgages that give the borrower the opportunity to pay a little bit extra to the have the option of locking in his or her rate at some point. "Not every one has a lock, but we look for it."

What she does not like to see in a mortgage is a lot of built-in risk. "I do not like to see low down payments. That's where you get in trouble. I don't like to see loans that are bumping up against what people are able to afford."

However, as long as the payments are well within the range that a borrower can afford, she's open to all types of loans, even those that have garnered bad reputations in recent years, such as mortgages that allow interest-only payments or adjustable-rate loans that change frequently.

"It's not risky if you buy the house correctly. When people get 'upside down' (owing more on their mortgage than the house is worth), it's because they paid too much for the house. That's what a lot of people are confusing. Lending money on a house that is not worth the price is risky." Bankrate's "What type of mortgage is best for you?" chart can help you find the type of mortgage that suits your lifestyle.

Be smart with equity
Home equity lines of credit, second mortgages that allow you to borrow and repay money much like a credit card, are a particularly convenient and relatively inexpensive form of credit. They work much like the revolving line of credit you have with a credit card, with one big exception: If you don't repay the home equity debt, the bank could foreclose on your home. They can't do that with a credit card. And imprudent use of a home equity line of credit can erode the equity you have in your home. Shine warns clients against them: "You shouldn't be bailing yourself out of consumption with your No. 1 asset," she says.

However, if you manage them carefully, having access to such lines of credit can be a lifesaver. They are a good source of funds for remodeling (which adds back equity to your home) or emergency credit -- at better terms than your credit card. If you tap your equity to pay for vacations or new furniture, however, your home equity line of credit can actually destabilize your overall financial picture.

Get a loan that fits your finances
The key to finding a good mortgage or a home equity line of credit, is first to understand your own financial picture thoroughly. Know what you can really afford to pay, and have a realistic estimate of how long you expect to live in that home. If you're certain that a job relocation will cause you to move in five years, for example, there's no need to pay extra for the security of a mortgage with an interest rate that's fixed for 30 years.

Conversely, if you can barely afford the payment during the first year of an adjustable-rate loan, it would be foolish to commit to a payment that is all but certain to grow.

"It's like so many things nowadays," says Shine. "People are busy and they don't pay enough attention to contracts, and this is a contract. Or they'll read it and not understand it."

If you don't understand the terms of any loan, you owe it to yourself to find a lender or a financial adviser who will take the time to explain them all to you.

Elizabeth Razzi is a freelance personal finance reporter and author of "The Fearless Home seller." She is based in the Washington, D.C., area.

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San Diego didn't get the nickname of "America's Finest City" for nothing. It is one of the most beautiful places in the country. With its beautiful and luxurious homes, great location near the beach and the availability of world-class goods and services, It is a great place to buy a home.

Location, Location, Location

Sure, real estate agents toss that phrase around quite a bit. But when it comes to San Diego, it can't be said enough. The city is bordered by California's famous Orange County on the north, the Pacific Ocean on the west, Mexico on the south and mountainous desert terrain on the eastern side of the city. The climate is gorgeous, the beach is at your feet and all the convenience and luxury of a major city surround you. Whether you love fine dining, gorgeous shops or outdoor activities like golf or surfing, this city has it all.

The Perfect Place to Call Home

San Diego is the playground and full-time residence of some of the most affluent people in the country. It is the second largest city in California and the eighth largest city in the nation with over 4 million people in the greater metropolitan area, but it amazingly maintains the feeling of an intimate hometown. San Diego is a great place to retire, with some of the finest medical care in the country. It is also a great place to raise a family, due to its low crime rates and outstanding school systems.

Amazing Jobs Await

Imagine cruising down the I-5 on your way home from work with the ocean at your side and the top down on your beautiful new Mercedes convertible at sunset. With the amazing job opportunities San Diego has to offer, that dream can soon be a reality. Money Magazine frequently lists this city in its list of the top ten places to live and work in the United States. Companies like Wells Fargo, The University of Southern California, Chevron and Hewlett-Packard all call it home. It is also a great place to be an entrepreneur, since the people here love to shop, dine out and access the finest services available.

The People and Places of San Diego

It is a great place to buy a new home. If you are just looking to invest in real estate, you will find the city's stable foundation in quality living makes its properties a great choice. The people in San Diego are as varied and vibrant as its many different neighborhoods, and they can't wait to welcome you with open arms. Whether you visit Little Italy or Mission Beach, you're sure to be greeted by friendly faces and beautiful places. If you are looking for a great new place to live, you owe it to yourself to take a look at America's Finest City.

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Real Estate Outlook: Positive Signs Reported Again by Kenneth R. Harney

With the stock market still jumpy and investors worried that the global recession may not be ending soon enough, it may seem a little surprising to see strong positive signs in the home real estate market.

But that's what's been happening.

Pending home sales rose sharply, by nearly 7 percent, in the latest month measured by the National Association of Realtors. Pending sales are those where the contracts are signed, but the deals haven't gone to settlement yet.

Pending sales were up in all four major regions of the country -- and that caught the attention of some key industry economists.

Orawin Velz, economic forecaster for the Mortgage Bankers Association, said in a commentary that "the steady improvements in pending home sales are encouraging," and confirm the view that existing home sales hit their cyclical bottom in January and are likely to continue to rise in the coming months.

Since the January low point, she noted, the Realtors' pending sale index is up by 13 percent.

Mortgage rates continue to be favorable, an average of 5.3 percent last week for 30 year fixed rate loans, 4. 8 percent for 15 year fixed, and those rates are pulling in growing numbers of home purchase loan applications.

According to the Mortgage Bankers Association's weekly survey, new applications to buy houses increased by nearly 7 percent in the week ending July 3rd.

Meanwhile a new survey by the California Association of Realtors found sales up in most parts of the state, especially in areas hard hit by price busts following the boom.

More than two out of three buyers polled by the group -- 68 percent -- said affordable prices are the key factor pulling them off the sidelines.

Now, of course, not everything is on the plus side in the real estate sector. Many of the houses being sold at near-giveaway prices are the byproducts of foreclosures and short sales, signs of continuing financial distress among many buyers who purchased at the height of the boom with low equity stakes.

Even the rental market is taking some economic hits in the face of rising home sales. Rental unit vacancies have just hit 7.5 percent nationwide; that's the highest they've been in 22 years, according to the New York research firm that compiles these statistics.

So on balance, real estate market conditions depend on where you're looking.

If it's home sales, the outlook is improving. On rentals, it looks like the turnaround will be a little further down the road.

Published: July 14, 2009

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Why List with Us?

The Middleton & Associates Team offers its clients a level of expertise, degree of professionalism and experience in negotiations that is unmatched in San Diego.

Experience:

$96 million in real estate transactions per year. These transactions are residential with the balance distributed between buyers and sellers.

Organized and Efficient:

There is virtually always an experienced Middleton & Associates Team member in the office ready to respond to out clients' needs and to get information to realtors, lenders, and escrow officers with quick turn around time.

Sales and Marketing:

Internet Marketing

The Middleton & Associates Team works with cutting edge technology partners to create an unmatched internet marketing presence to help give their clients a competitive advantage in today's high-speed technology driven world.

For Sellers: This commitment to state-of-the-art internet marketing and sales ensures that your property is presented to a far greater number of prospective buyers than other agents can offer. More buyers seeing your property translates to a faster sale of your property.

For Buyers: We offer a variety of tools that allow you to get real time information o the latest home listings, upcoming open houses and price reductions on already listed properties. Furthermore, we offer an on-line VIP service to help you organize your home search efforts. This VIP tool allows you to save and modify your home search results as well as earmark your favorite properties for consideration.

Traditional Marketing:

In addition to internet marketing, we use every other possible medium to broadcast the availability of properties and to advertise our service. Our marketing methods currently include the following;

• Newspapers (San Diego Union Tribune)
• Harmon Homes Magazine
• Signage on Properties Listed For Sale
• Attendance at Broker Caravan Meetings
• Brokers' tours of properties just listed
• Flier Distributions to area homeowners &/or realtors
• Property packages which may include inspections, reports, maps, etc
• Open Homes on Saturdays and Sundays
• Postcards

A GREAT ARTICLE FROM DQNEWS.COM.

Southland home sales ease but still beat '07; median falls below $300K

December 16, 2008

La Jolla, CA---Southern California home sales outpaced last year for the fifth consecutive month in November, when 55 percent of buyers in the resale market chose repossessed homes. The abundance of discounted foreclosures helped push the median sale price down a record 35 percent from a year ago, a real estate information service reported.

A total of 16,720 new and resale houses and condos closed escrow in the six-county Southland last month. That was down 22.3 percent from 21,532 in October but up 26.9 percent from 13,173 in November 2007, according to San Diego-based MDA DataQuick.

On the surface, last month's sales look much weaker than in the prior two months: November's 26.9 percent year-over-year sales increase compares with annual gains of 64.6 percent in September and 66.7 percent in October. Moreover, the 22.3 percent drop in sales between October and November was a record and compares with an average October-to-November decline of just 7.4 percent since 1988, when DataQuick's statistics begin.

But November also had an unusually low number of business days when transactions could be recorded. Most counties had 17 business days last month, compared with 22 in October and at least 19 in most Novembers over the past 20 years. In most counties, the Thanksgiving and Veterans Day holidays resulted in three fewer business days last month, plus this November started and ended on a weekend.

Last month appears stronger when viewed this way: Its average number of transactions recorded daily was only about 1 percent lower than the daily average in October, which had the highest number of sales for any month so far this year.

"Bargains and bargain hunters have kept this market alive through some of the bleakest financial news in memory. There's this renewed sense that you can score a 'deal' - something that had been missing for many years. Last month's Southland sales weren't great, given they were the second-lowest for any November in 16 years. But they could have been a lot worse," said John Walsh, DataQuick president.

"Many first-time homebuyers are, understandably, cheering as foreclosures dominate sales, tugging down prices and raising affordability," he continued. "For home sellers and the industry, though, one concern over foreclosures representing half of all sales is that those transactions simply repay lenders. They don't trigger a move-up purchase."

The median price paid for all homes combined last month was $285,000, down 5 percent from October and down a record 34.5 percent from November 2007. Last monthâ€^TMs median was the lowest since it was $298,000 in April 2003, which was the last time the median was below $300,000. November's median stood 43.6 percent below the peak $505,000 median reached in spring and summer of last year.

The median price has eroded consistently over the past 16 months as price depreciation swept the region, discounted foreclosures ballooned in inland markets and sales stagnated in higher-end neighborhoods. The latter have suffered from, among other things, a difficult financing environment for large mortgages.

Foreclosures have accounted for about half of all Southland resales during the past three months. In November, 54.6 percent of all the homes that resold had been foreclosed on at some point in the prior 12 months. That's up from 50.9 percent in October and 18.8 percent a year ago.

At the county level, these "foreclosure resales" ranged from 44.1 percent of November existing home sales in Los Angeles County to 70.4 percent in Riverside County. In Orange County foreclosure resales were 44.2 percent of sales; in San Diego 52.1 percent; San Bernardino 67.8 percent and in Ventura County 47.8 percent.

Since summer, many inland markets rife with discounted foreclosures have seen sales double or more from last year thanks to increased affordability. Most zip codes with such gains have a median resale house price under $260,000, and that median has fallen at least 35 percent from a year ago. About half of all buyers in such inland areas are using government-insured, FHA financing.

Conversely, November sales fell from last year in areas typically near the coast, with a median over $500,000 and an annual price drop below 20 percent. Well under 30 percent of the sales are FHA-financed.

MDA DataQuick is a division of MDA Lending Solutions, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. MDA DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

The typical monthly mortgage payment that Southern California buyers committed themselves to paying was $1,323 last month, down from $1,413 the previous month, and down from $2,049 a year ago. Adjusted for inflation, current payments are 37.4 percent below typical payments in the spring of 1989, the peak of the prior real estate cycle. They are 48.7 percent below the current cycle's peak in June 2006.

Indicators of market distress continue to move in different directions. Foreclosure activity has waned recently but remains near record levels, while financing with adjustable-rate mortgages is near the all-time low, as is financing with multiple mortgages. Down payment sizes and flipping rates are stable, non-owner occupied buying activity appears flat overall but is above-average in some markets, MDA DataQuick reported.

Source: DQNews.com Media calls: Andrew LePage (916) 456-7157 or John Karevoll (909) 867-9534