San Diego Real Estate Showing Signs of Strong Recovery. 2011 Year in review. Buyers take advantage of lower priced home values and record low rates.

In San Diego County last year, people flocked to lower-priced properties, sellers slashed prices and cash buyers gained steam, the U-T San Diego found in a year-end analysis.

... Related: 2011 year in review: Most popular home-price ranges

Here's a closer look at some of the hottest and coldest areas in the county, based on numbers gathered by real estate information service DataQuick.

Want to see more? Pick up a copy of the U-T San Diego on Sunday and turn to the business section. Or see the rest of this in-depth package over the next few days.

Condo prices take a hit in Tierrasanta, Mission Valley
Ocean Beach and Golden Hill were among the bright spots in single-family resale prices when comparing 2011 with 2010. The median price in Ocean Beach last year ended at $715,000, up almost 6 percent from the prior year. Golden Hill saw a 3.5 percent bump in 2011, taking it to $207,000. Tierrasanta had one of the largest jumps in condo sales last year, but the area saw one of the largest dips in condo prices. Values fell from $342,000 in 2010 to $250,000 in 2011, or 27 percent. Mission Valley condo prices also took a big hit, sliding 22 percent to $200,000. More than one-third of total sales in Mission Valley last year were completed with cash. That’s higher than it was last year, when it was 27.1 percent.

Borrego Springs resales lure cash buyers and investors
Borrego Springs was one of the areas in the region to gain the most ground in single-family resales from 2010 to 2011, rising from 70 to 102, or almost 46 percent. On the flip side, the median price for a single-family home in Borrego Springs fell nearly 21 percent to $128,000. The price-sales dynamic may be explained by the fact that the area is a favorite among cash buyers and investors. Another hot spot in single-family resales was east Vista, where sales increased from 311 in 2010 to 370 in 2011. That’s a 19 percent jump. The median price for a single-family home there fell 7.8 percent last year.

Coastal Del Mar dazzles as Solana Beach stays sluggish
The coastal area of Del Mar was a standout in three real estate categories in 2011. The area saw one of the largest increases in single-family resales in 2011, rising to 159 from 107 in 2010, almost a 49 percent increase. Del Mar also was a bright spot in single-family prices. The median price in 2011 rose 8 percent to $1,350,000. Del Mar’s prices also held up in the condo category, rising from $515,000 in 2010 to $643,750 in 2011. That’s a 25 percent increase. Among the weakest spots in the coastal area: Solana Beach. Single-family resales dropped 32 percent to 139 in 2011. The median price for a single-family home fell nearly 21 percent to $1,030,000.
First-time buyers flock to Eastlake-Otay Ranch area
The Eastlake-Otay Ranch area shined in new-home sales, as new development in the low-$300,000s became available. Home sellers in the 91913 ZIP code sold 262 homes in the Eastlake-Otay Ranch neighborhood, up from 151 in 2010. That’s a 74 percent increase. The area was popular among first-timers instead of cash buyers or investors. Cold areas in South County included Imperial Beach in the single-family resales category and Nestor in condo resales.

Jamul leads in price gain, while Campo prices take a hit
Jamul was the top performer in single-family price when comparing 2011 with 2010. The median price increased 9 percent, from $390,000 to $425,000. Jamul’s single-family home resales also went up. They rose from 84 to 95, or a little more than 13 percent. Campo, on the other hand, was one of the areas that saw the sharpest price declines in 2011. The median price there fell from $145,000 to $125,000, or 14 percent. A little more than one-third of transactions there were made in cash.

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My team and I have helped over 25 families a year successfully complete Short Sales since 2007. To us you are more than just another number. We take pride in providing the service and information you deserve. We have worked with every major lender in the market so you couldn't speak to a more experienced company about your short sale situation. Visit www.thewatsongrouprealty.com to find out if you can qualify for a Short Sale. Also, ask about the NEW Senate Bill 458 that requires lenders to forgive ALL debt after a short sale.

CA Senate Bill 458 No-Recourse Short Sale Bill was passed on July 15th, 2011. It specifically requires all lenders, including Junior Liens and HELOC’s, to forgive the remaining balance after a short sale is completed. This is a major victory for upside down homeowners in CA and can allow short sellers to breathe a sigh of relief by not having to worry about their lender pursuing them for money after a short sale.

There are a few exceptions and some other minor details. Contact me TODAY find out more about the new Senate Bill 458 and how it will affect you after a short sale.

Our Refined Short Sale System:

• FREE PROGRAM: NO COSTS TO YOU
• SENATE BILL 458 - WALK AWAY OWING NOTHING TO THE LENDER!!
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• WE NEGOTIATE WITH YOUR LENDER FOR YOU OVER 90% SUCCESS RATE
• HAFA & Bank of America Coop Short Sale Program – GET $3,000 AFTER THE SHORT SALE
• LIMIT YOUR CREDIT DAMAGE

What is a Short Sale?

A short sale is necessary when the proceeds from the sale of your home are not enough to pay off the loan balance against the home, thus prohibiting the sale. A short sale will allow a homeowner to sell their home for less than the amount owed on the mortgage and the difference does not have to be paid back to the lender.

4 Myths About Short Sales

I don't have a serious enough hardship to qualify for a short sale.

Today, it's harder to Not qualify, than it is to Qualify. There are numerous ways to qualify for a short sale and a borrower does not have to be behind on payments. If a borrower can show that they are struggling to make payments or are facing some other type of hardship such as a divorce, tenant moving, job transfer, medical emergency, decrease in pay, etc., then a bank will seriously consider approving a short sale.

I'll be responsible for the difference between what I owe and what my home sells for.

CA Senate Bill 458 No-Recourse Short Sale Bill was passed on July 15th, 2011. It specifically requires all lenders, including Junior Liens and HELOC’s, to forgive the remaining balance after a short sale is completed. This is a major victory for upside down homeowners in CA and can allow short sellers to breathe a sigh of relief by not having to worry about their lender pursuing them for money after a short sale. There are a few exceptions and some other minor details. Contact Rod Watson TODAY find out more about the new Senate Bill 458 and how it will affect you after a short sale.

My credit will be ruined if I do a short sale.

A short sale can actually save your credit. It is treated by your lender as a "settlement of debt", and as opposed to a foreclosure, it is infinitely easier on credit and for a much shorter period of time.

I will owe taxes on the amount of loss that the bank takes on my short sale.

This can be avoided most of the time. As an example, if your lender accepts $100,000 less than what you owe them they may report this amount to the IRS, and you will be taxed on that $100,000 as 'ordinary income' at the end of the year. Good news is there are many ways to avoid this tax, including recent legislation. You can research the Mortgage Forgiveness Debt Relief Act of 2007 or see if you qualify for "Insolvency". Contact your tax advisor.

Why our System works and can work for you:

We have been doing Short Sales since 2007 and have developed a system over the past few years that take the guess work out of successfully completing a short sale. We provide all of our sellers with an upfront offer from our investor group. Because banks do not start processing short sales until an offer is submitted, this allows us to start negotiating with the lender right away thus starting the approval process right away. This approval process can take anywhere from 30 to 60 days depending on the lender that owns the loan. Seeing that homes are sitting on the market for 60 to 90 days or more without an offer, this upfront offer can save homeowners months of crucial time especially if they are struggling to make payments. Contact Rod Watson today at 619-512-9120 for a free consultation to find out more and to see if you can qualify for a short sale. Again, our short sale program is FREE you have nothing to lose!

Short Sales - Pros

1. CA Senate Bill 458 No-Recourse Short Sale Bill was passed on July 15th, 2011. It requires and guarantees you will be forgiven on all debt after a short sale in CA

2. If your property is 100,000 dollars upside down, you get rid of the liability now. If you do a loan mod and then have to sell your house in two years, you may still be 100,000 dollars upside down or worse.

3. Within a few years your credit rating may recover and you may be in a position to purchase property in a down market.

6. You may get to live rent free for a while.

Short Sales - Cons

1. You may not be able to buy a house for a little while. (Average 1 to 2 years)

2. You will have to move eventually.

3. You may damage your credit (Though much less than a foreclosure)

4. You have to deal with the hassle of the selling process.