I have written here in ActiveRain and in my " The VoiceOfSanDiegoRealEstate. com " blog a good bit over the last year about the looming water crisis in California and in San Diego in particular.
What's the cause of this problem? No rain ? Not enough snow in the mountain elevations? Partly, but there are so many other factors from some other unlikely sources.
For years and years we have been ignoring a simple truth. Southern California and much of San Diego is a desert area. It doesn't rain much in desert areas, I suppose that's why they call it the desert. When you pretend it is not the desert, and just build home after home and community after community believing that importing water will disguise that, eventually there comes a reckoning. That time of reckoning is now upon us.
When you compare our currently neighborhoods with lush green grass, trees and flowers with what is all around us, the contrast in startling. This was all made possible because the supply of water was able to be purchased and the supply we purchased is now going to be greatly diminished by an extended drought, the courts protecting fish in the Sacramento River Delta, and the common business principle of supply and demand.
Mandatory conservation is now going to be imposed and the costs are going to be skyrocketing shortly for the water that will have to be rationed out. Farmers have already had to lay fallow land that was previously used to raise our crops. Farming was big in parts of Southern California but it's significance is beginning to wane with less water.
This water story has been known for years but mostly ignored even as the costs continually increased year after year. Now it has hit the "crisis" level and people will be forced to take serious notice.
Sadly, I think most of this could have been avoided over the years but wasn't taken seriously enough. And for those who foresaw this looming crisis, they were simply rebuffed of their recommendations.
Environmentalists who want to protect life (not necessarily human life ) stand in the way of technology to convert sea water to drinking water. Elected officials stood in the way of those who wanted to conserve water by recycling used water by not providing the funding needed to make it happen. All the while, consumers continue to waste this precious resource.
A reckoning has begun. Consumers will have their supply of available water curtailed while having to pay nearly double what they get. The question I ponder is how will this affect home values and will create additional downward pressure on those values. For those that move here from other areas, will this water issue be the deciding one that says, No Thank You? Don't be surprised if it does. This has long been predicted and it appears that no one paid much of any attention. I hope everyone is ready to pay the water piper.
In just a little less than an hour it's going to be " Batter Up" at the San Diego Petco Park in Downtown San Diego. For the fans here in San Diego, this day never arrives too early. Wish I could be there!
And we are playing one of our biggest rivals tonight, the LA Dodgers. With a 4 games series today through Thursday, the Padres are likely thinking ahead to the post season playoffs.
Recent new ownership of the Padres this year hasn't made a lot of changes as yet so it will have it's eye out for what the ownership cares most about. Being on budget and and how to get a winning team from a bullpen with less than 2 years average team experience. Of the 13 pitchers taking the mound this season, only 5 were on the roster at the start of spring training.
The Padres fans will be cheering the team on but the pundits are not hopeful for a winning season.No matter, the Padres have proven them wrong before and I expect if this team has the heart, they'll do it again.
I'll come back and fill in the score but the way I see it - it's a long time before we have to give any real concern about the stats. In the mean time , it is Opening Day at Petco Park and with all the festivities and the magnificent weather, it's that magic time in spring again to say, "Play Ball".
With the rate of foreclosures having settled down from the recent moratorium, now with the lifting of the moratorium we may soon be back to business as usual here in San Diego County. The foreclosure business.
Data Quick reported that there was 1,232 foreclosures in February and 11% increase over January 2009. It seems clear that the moratorium to allow work outs as directed by the recent legislative undertaking, is not going to do much to slow this process down. Unless Congress mandates that those banks that received bailout money may not continue the foreclosure process, the legislation approved for the loan modifications is not helping enough here in San Diego.
The number of San Diego homes that are not benefited by the new loan modification guidelines because they have greater LTV ( Loan to Value) ratios than the 105% cap, leave too many vulnerable to foreclosure.
I think many experts in both the real estate and the mortgage industry know that San Diego statistics in this regard will be more vulnerable than some other areas, as this area was hit particularly hard and the economic downturn on top of it is certainly not helping.
The number of loan defaults also greatly increased from January to February by some 23%. While they are in a holding pattern at the moment, unless and until there is some help to prevent the foreclosures, I expect the actual number of foreclosures to continue on the rise for a some time to come. The hope many of us is that lenders will pursue alternatives to the foreclosure route but there are just as many that believe that the real cure to this mess comes from getting this foreclosure business over with as soon as possible with no more bailouts and taxpayers funds used for this purpose.
As real estate professionals, we are caught between wanting to help and getting things back on a more even keel and the knowledge that many feel the taxpayer burden on trying to help so many, in the end will not save them and it may be better to bite that bullet now as opposed to later.
If the economy continues to drive the unemployment rates higher ( already at 10.5% in California) people losing their jobs will surely add more to these numbers and more and more pressure will come on the homeowners, the communities and the property values around those most affected. It would be great if we could just click our fingers and end all this but it looks to me ( as sad as it is) like this is going to be around for the foreseeable future.
The annual World Water Festival is being held today in Carlsbadat the Aqua Hedionda Lagoon Discovery Center.
This is the same site where the new Posiden Desalination Plant, the first of its kind in San Diego County will be built with operation expected by early 2011.
The mission of the Aqua Hedionda Discovery Center is about educating the public about aquatic wildlife and our environment. For this family oriented event, the Discovery Center has partnered with 3 of San Diego's most distinguished local authorities specializing in marine biology.
San Diego is home to some of the true world specialists in marine biology and marine ecologyand these partners, The Hubbs-SeaWorld Fish Hatchery, The Birch Aquarium and the New Legoland Sea Life Aquarium have quite an amazing show planned to teach the public both young and old about aquatic life and water conservation.
A few of the things that the public will learn about actually correct misconceptions. For instance. Most believe that outdoor storm drains go through the sewer system. But in fact what we have learned that is that these storm drains are separate from the sewer systems and flow directly to lagoons waterways and the ocean. So what ever goes down them ends up in the water. Chemicals used to clean driveways, paint overspray, fertilizers, soap from washing the car all end up in the waterways.
This year, it is of particular importance because starting as soon as July 1 of this year there is going to be a mandatory water usage cut back through out the city of San Diego. The Mayor’s plan calls for a 45% reduction in outside water usage and a 5% cut of indoor water usage. Before these numbers are finalized the city council has to consider the issue but most believe that the final plan will be close to the overall goal of reducing water consumption by 20% overall through out the city. The devil is in the detail of course so I’ll report on it as soon as I know what the actual numbers will be.
For those that can attend this event, they will get their ears and eyes filled with sights and sounds that both educate and entertain. The message going out should also remind those living on and utilizing the coastal water and habitat, that it does carry a bit of responsibility for the citizens to learn about it and respect and conserve this most precious environment.
The Governor signed into law a senate bill that provides New Home Buyers with a tax credit when they purchase a new primary residence in California.
Between March 1, 2009 and March 1, 2010, New Home Buyers can earn a tax credit up to $10,000 on a qualified personal residence. The qualified property an be a single family home or an attached property. There is 100 million in tax credit available so it will be available on the next two years on a first come, first serve basis.
The qualifying rules are as follows:
The California Franchise Tax Board will be working with Title and Escrow companies to implement the program throughout the state. What is especially nice is that the New Home Buyers may also qualify for the Federal $8000 tax credit if they are also first time home Buyers.
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I consider San Diego an excellent place to live and would love to share with you my enthusiasm for the numerous communities that encompass it. Looking forward to working with you. CA Lic # 01048160
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