A few weeks ago, our Governor declared that state wide drought conditions are now severe and ordered the Department of Water resources to transfer water to the areas with the severe shortages as requested.
Meanwhile, back in San Diego County, the San Diego County Water Authority declares that despite the drought and despite the plan for the drought that they developed in 2006, they are not going to mandate restrictions but would rely on the first stage of their plan, voluntary water conservation under a program called the " 20-Gallon Challenge". This provides for a voluntary pledge by consumers to voluntarily cut their water usage for each member of the household.
This challenge, launched last year got it's name from the conservation goal of reducing the daily use of water by 20 gallons a day per person.
Part of what was established as the 2006 plan contains the following 3 stages.
1. Voluntary Conservation, the 20-Gallon Challenge. To date there have 1,363 pledges from citizens in the county. There are over 3 million people county wide, so I was wondering ............well, never mind. I am sure they understand this way better than I do.
2. Secure water transfers, update the water drought response ordinances and start a 1.8 Million Dollar Advertising campaign.This is slated for this year 2008.
3. Mandatory cutbacks and help establish with its 24 member agencies ( the different cities and municipalities in the county) to arrange similar drought responses. ( this action is guestimated for 2009)
So for the rest of this year a least, there will be no mandatory restrictions imposed.
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Courtesy of William Johnson GRI CRS e-PRO author of The Real Estate Text Book and The Voice of San Diego Real Estate
There are about to be some big changes that will effect nearly every adult citizen in California. And if you measure adult as 18 years or older, this law will have an even more profound effect for anyone under the age of 18.
The new California cell phone law takes effect this July 1, 2008. And it is going to be such a revenue builder here in in California. Passed into law as a consumer protection law, it is have some powerful implications for those under 18 years of age and perhaps cause a real change in the habits for all consumers.
No one under 18 years of age driving a vehicle may use a cell phone in any way shape or form except for emergency purposes only. They are clear to define emergency as calling the police, 911, fire dept or medical authorities. Further they may not use a laptop, pager or any other electronic communication or mobile device to speak or text while driving in any manner at all.
Any licensed driver under 18 including even an emancipated minor may not use nor be permitted, even by a parent or other adult, to use a wireless phone while driving.
Any adult 18 or older may use a mobile device as long as it is hands free. All handheld devices are now prohibited by this new law. The hands free device, either bluetooth or using an earpiece is acceptable with the caveat that any earpiece such as a headset or ear phones may not cover both ears. Bluetooth ear pieces are acceptable.
This new law will go a long way in saving lives keeping people's attention on driving and not on their cell phones. This new law with is fines and penalties may also have the added benefit of raising capital to offset the short fall in municipal revenues. Hummm? I wonder if they had even considered the potential of the possible revenue when they were passing this bill into law?
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Courtesy of William Johnson GRI CRS e-PRO author of The Real Estate Text Book and The Voice of San Diego Real Estate
Market Indicators across the country ( to varying degrees) seem to be improving in the HAI, Housing Affordability Index. With all the price corrections, has the market hit a plateau?. When you factor in the increasing interest rates, housing costs may actually be increasing in many areas.
Here in the San Diego market, we are reminded almost daily of all the declining home values. While that should be enticing to the buyers, something else is going on and it may soon be negating the Buyers advantage,
Many home buyers have been sitting on the sidelines awaiting the press to tell them when it is OK to start buying again. ( I hope they aren't holding their breath as we will soon have a lot of lifeless bodies out there).
Take a look at this and see if this is what they mean by hitting the bottom of the market?
In April of 2008 the median price for a typical home in San Diego was $430,000. In May it dropped again to $420,000. However in April the average interest rate was 6.1 % and now it is at 6.8%. As others say, "Do the math". Well, I'll do the math and you draw your own conclusions.
Median Sales Price April 2008 in San Diego County
$430,000
10% Down 43,000
Financing at 6.1 APR
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Mortgage Summary
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||
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$2,869.26 Monthly Payment |
$1,032,934.44 Total of 360 Payments |
|
|
$457,271.94 Total Interest Paid |
May, 2038 Pay-off Date |
|
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$130,612.50 Total Tax Paid |
$58,050.00 Total PMI Paid
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Now let's do one for todays median price and the mortgage rate of 6.8%
Median Home Price May 2008 in San Diego County
$420,000
10% Down
Financing at 6.8 % APR
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Mortgage Summary
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||
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$2,976.15 Monthly Payment |
$1,071,414.80 Total of 360 Payments |
|
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$509,139.80 Total Interest Paid |
May, 2038 Pay-off Date |
|
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$127,575.00 Total Tax Paid |
$56,700.00 Total PMI Paid |
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* For this example of the variable costs, the monthly payment reflects Principle, Interest Taxes and 1/2 %for PMI. The Property Tax rate used in the calculation was 1.1245% of the sales price ( our average property tax rate). This illustration does not account for points or other applicable loan costs. It uses an average housing cost number and a calculation of an average interest rate.
One begins to see that we are now coming upon a threshold of diminishing return in postponing buying decisions. It is costing more to own even the lower priced home than it did a month ago at a higher price because the rates are increasing. It would seem to me that with this scenario, it would require a faster drop in home values than the steady increase in interest costs. And I don't see that happening right now. If Buyers don't soon seize the opportunity , as the market begins its rebound, with even just a small amount of annual appreciation, and the higher rates, many buyers will once again be priced out of the market.
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Courtesy of William Johnson GRI CRS e-PRO author of The Real Estate Text Book and The Voice of San Diego Real Estate
In my post yesterday I discussed ways to optimize your blog site and help you reach consumers. Kathy McGraw and Lynda Eisenmann, prolific Rainers and wonderful friends are both working on new sites and I am sure many other are as well. In my efforts to always try to give back, I wanted to share part of my thinking about content when I was putting my blog site together.
When Jim Cronin from the Real Estate Tomato created my site part of my interview was to discuss some of the many aspects of consumer information that I would provide.
As a continuation of yesterday post, these are some of my exact notes on a list I created to further the aspect of the " Content is King" approach to my site The Real Estate Text Book.
Core Categories of Topics
9 Costly Mistakes a Seller Makes When Selling Their Home
The 6 Step Process of Selling Your Home Part I
Overpricing Your Home Will Cost You the Sale and Lost Value
Making your Home the BIC of the neighborhood.
What Makes A Winning Marketing Plan and Who is in Control of it?
Why I recommend An Exclusive Buyer Brokerage Agreement For Buyers
Agency , What Is It and Why Is it Important To You ?
7 Tips for A New Buyer in the San Diego Real Estate Market
The Basics of a structured Sale
Will Ben Bernanke Come Charging In On His White Horse And Save the Day.......and Our Market
Mortage Rates Are Coming Down and Home Sales Are Likely To Increase
Good News! Easing of the Lending Reserves Could Fuel a Surge in Our Housing Markets
*Red Alert* New "Point of Sale" Bill Pending in Assembly Could Affect San Diego HomeOwners!
The Scarlett Letters of " Declining Market", Redlining ??
Lender Requirements for Consideration of "Short Sale" Approval
The Wall Street Journal Reports The Housing Crisis is Over! Is It?
The IPod Touch, An Amazing Piece of Equipment
Technology comes to Balboa Park
An Interesting Bit of San Diego Historical Trivia.
It is Late Spring 2008, Is it the time to Buy Real Estate In San Diego ?
Specific Community ( Events, Items of Interest, School Information)
US Opens Comes to San Diego at Torrey Pines
San Diego Interactive Map of Communities
Making your Home the BIC of the neighborhood.
Home Makeover Series: The Kitchen - Getting Ready To Remodel Your San Diego Kitchen
Home Makeover Series: The Kitchen
Important cleaning and fix-up areas often overlooked when bringing your home to market
Will Ben Bernanke Come Charging In On His White Horse And Save the Day.......and Our Market
A Serious Discussion on Mortgage Loans and Lending......The Past, The Present and The Furure
Where Are We Headed In The Housing Markets For 2008
San Diego and The Housing Market Staging a Comeback!
Market Update for San Diego County Jan1, 2008 through may 30th, 2008
The Wit and Wisdom of Andy Rooney
Through understanding better what consumers want and how best to provide market news and other related topics of interest, taken all together , these types of articles when well written helps ensure the consumers returns to the site. These are only ideas I wanted to share with my friends on ActiveRain that work for me.
Courtesy of William Johnson GRI CRS e-PRO author of The Real Estate Text Book and The Voice of San Diego Real Estate
I had the pleasure on Saturday April 26th of visiting a newer art gallery in La Jolla. It was Peter Lik's Fine Art Photography Gallery, one of number around the country. I have never seen anything like this gallery before and the work that was on display. I was very impressed with this man's passion for photography of nature and the way he captures his images. I understand that his camera is a single lens camera built back in the 40's. With the use of his genius as a photographer, special film and printing processes, he creates a magic that is in my opinion unparalleled in the art world. I hope you will spend a few minutes on his site and enjoy a least a glimpse of what I saw at his gallery. Using the single dimension of the internet does not even begin to do justice to his work that is framed and printed on special chromatic paper to bring the brilliance of the colors to life. Totally awesome!
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