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We at Top Agent Realty Group have kept a vigilant ear to the ground and based on our local area conditions, we can summarize that this market has seen a marginally negative roll back in residential values. When we look at a drop in values, and currently a consistent drop in mortgage rates, our ratio to purchase a property has never been better, at least not since the mid-80’s. High interest rates back then drove prices downward. Today, vacancies driven by foreclosure have increased inventories of residential homes across the market and thus have an effect on the values. Is it a good time to sell? All things being relevant, of course it is. Your income stream should be considered in helping you determine if now is the right time. If that income stream has not changed, it is logical that the reduction in price of a home you couldn’t afford two years ago is now affordable. We should not focus on the equities we once accumulated as a source for the down payment on the next home we enjoy. The affordability factor for young families is at a very attractable level. The affordability factor for golden year retirement is fantastic. And, the affordability factor for long term investors is prime. Our market outlook for the next two years will be similar to the early stages of the real estate boom we saw five years ago. If at any moment during the last boom period you might have said to yourself, “I wish that I had taken advantage of it” now is the time for a second chance. In real estate, we don’t get that too often.

Based on our local area conditions, we can summarize that this market has seen a marginally negative roll back in residential values. When we look at a drop in values, and a consistent drop in mortgage rates, our ratio to purchase a property has never been better, at least not since the mid-80’s. High interest rates back then drove prices downward. Today, vacancies driven by foreclosure have increased inventories of residential homes across the market and thus have an effect on the values. Is it a good time to sell? Of course it is. Your income stream should be considered in helping you determine if now is the right time. If that income stream has not changed, it is logical that the reduction in price of a home you couldn’t afford two years ago is now affordable.We should not focus on the equities we once accumulated as a source for the down payment on the next home we enjoy. The affordability factor for families is at a very attractable level.

Yesterday, Carin had the opportunity to view the newest resort and hotel in town while attending the Carlsbad Chamber of Commerce's Sundowner Dinner. The Sheraton Carlsbad Resort and Spa is a new facility that offers a full service spa, more than 30,000 square feet of indoor and outdoor meeting facilities with ocean views, large ballrooms, a fitness center, 250 guest rooms and  very large pool (See Carin's Picture Below).

The resort is located at:

5480 Grand Pacific Drive
Carlsbad, CA 92008

For more information, visit the Sheraton website at: http://specialoffers.starwoodhotels.com/Sheraton_Carlsbad/so.htm?EM=GOOGLEMAP_SI_1719_SOP_SOCAL

The mortgage limits set by the Federal Housing Administration for California counties were raised recently. The new limits are meant to be adjusted relative to the rise in the median price of homes throughout the state, but will only be effective until the end of 2008. San Diego’s limit has been raised to $697,500 from just $417,000. This change comes as an effort to stimulate the origination of larger mortgages, which could lead to lower interest rates. This affects consumers by making flexible financing readily available, even at higher prices.

The new Limits for California, by county are listed below, courtesy of the Wall Street Journal.

FHA Mortgage Limits in California by County