4 Ways to Stabilize the Real Estate Market
November 13th, 2008 Categories: Real Estate News San Diego Market Trends San Diego Real Estate
by Roberta Murphy
The San Diego real estate market may not be as bad as Detroit’s–or those in Las Vegas, Sacramento or Miami–but the real estate market here could use a some resuscitation.
I am usually inclined to agree with those who believe markets are self-correcting and should be left to their own cleansing processes, but the economic heart attack gripping the world today calls for drastic treatment.
Recognizing that billion$ flowing into insurance companies and banks will do little to directly stabilize our real estate markets, the National Association of Realtors (NAR) suggests the following four steps to aid in recovery:
The Four Point Plan
The most recent economic stimulus bill, the Emergency Economic Stabilization Act, was a good first step towards stabilizing our nation’s economy. Unfortunately, a number of the Act’s provisions have not proven to be as useful at stabilizing the nation’s housing markets as was first thought.
Congress may consider second economic stimulus bill this month. If they do, there are a number of changes that could help to provide more stability to the nation’s real estate markets which most agree is a necessary step towards recovery.
The National Association of Realtors (NAR) is urging Congress to include the following provisions in any future legislation:
- Make the $7500 tax credit available to all purchasers and eliminate the repayment requirement. The credit’s limited availability and required repayment terms have severely limited the credit’s appeal to potential homebuyers. As a result, the credit has not been widely used or proven effective at stimulating sales.
- Make the 2008 FHA, Fannie Mae and Freddie Mac loan limits permanent. New rules for 2009 would significantly reduce the FHA, Fannie Mae and Freddie Mac loan limit from their 2008 levels. Now is not the time to limit the availability of affordable mortgages.
- Get the Emergency Treasury bank relief program back on track by targeting more funds to mortgage relief efforts and increasing efforts to mitigate foreclosures. Don’t just give the banks unrestricted cash. Make the program work to improve mortgage and housing markets as it was originally intended.
- Permanently bar banks and banking conglomerates from engaging in real estate brokerage and management. The banks have proven they have enough to do to simply properly manage their current lines of business. Do we really want them to manage on the home buying process? Imagine what could have been the situation now if they already had the added ability to engage in real estate sales.
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Let’s Add Pro Bono Work to NAR Code of Ethics
November 12th, 2008 Categories: Carlsbad Real Estate San Diego Communities San Diego Real Estate
by Roberta Murphy
Joe Ferrara is a man with many hats and one very big heart. He’s a real estate attorney in New York, a real estate broker, a premier real estate blogger–and someone who just might convince the National Association of Realtors (NAR) to add a pro bono clause to the NAR Code of Ethics.
Joe’s must-read blog article about this pro bono proposal is one that should inspire all real estate professionals to reach out to their communities and try to help people stay in their homes, even if they are not paid for their efforts. Why? some might ask–especially when times are tough for almost everyone?
Why?
Because, so many of us have the knowledge and expertise to help guide others through these treacherous financial waters. Because we are all weathering this storm together. Because someday real estate markets will stabilize. And because….
It sometimes just feels good to do good.
Thanks for this morning’s inspiration, Joe!
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California and San Diego Voters Have Spoken
November 5th, 2008 Categories: San Diego San Diego Beaches San Diego Events
California and San Diego Voters
At election time in California, it is always interesting to see what issues voters put on the ballots with their Propositions-and the voting results are always interesting.
Yesterday, California and San Diego voters passed or voted down the following issues:
Passed the controversial Propositon 8, which bans same-sex marriage in California.
Passed Proposition 2, which calls for the humane treatment of farm animals.
Defeated Propositon 4, which would have required parental approval for California teen abortions.
Passed Proposition 1-A, which will provide high speed train service between Los Angeles and San Francisco.
Locally, San Diego County voters
Passed Propositon D, which bans alcohol consumption on San Diego beaches.
Passed Proposition K, which will keep sand on Encinitas beaches.
Passed Propositon H, which increases Del Mar’s bed-tax, or transient occupancy tax (TOT), on Del Mar hotel and vacation rental stays to 13 percent.
Defeated Propositon O, which would have put San Marcos redevelopment and growth plans on the skids.
Passed Proposition S, the San Diego School Bond measure.
As a side note, Controversial San Diego City Attorney Michael Aguirre was defeated by Judge Jan Goldsmith.
These are only a few on the propositions and choices put before California and San Diego voters yesterday, but are some I was following with interest. And the issue that somehow excites me the most is the prospect of having a high speed train running between Los Angeles and San Francisco. That, of course, would also help connect San Diego to San Francisco via rail–and I am already fantasizing about the trip.
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San Diego Real Estate Independents
November 1st, 2008 Categories: Real Estate News San Diego San Diego Market Trends San Diego Real Estate
The plural of anecdote is not data , (J.K. Galbreath), but sometimes anecdotal evidence evolves into verifiable data–especially when the landscape is littered with dead canaries.
In this case, I am referring to casualties in real estate brokerage–particularly in the San Diego real estate market. For the last couple of decades, we heard the warnings and saw lots of anecdotal evidence that small brokerages and Mom and Pop realty shops were being absorbed by big blue franchises such as Prudential, Coldwell Banker, ReMax and the like.
Few thinking of starting a real estate brokerage business in those days would consider doing so without an umbilical cord tied to one of the big franchises. In exchange for around 6 percent of an office’s commission flow (and substantial buy-in fees), the franchise provided national advertising, referrals–and strict guidelines for local operations. Everything from signs to stationery to office location were subject to franchise approval.
For 25 years, real estate franchises dominated the landscape and data suggested that it would be nigh to impossible to exist without the franchise umbilical cord–and that independent real estate companies would go the way of the blacksmith, the eight track player and full service gas stations.
But then the real estate market crashed–and crashed hard. Consolidation became the guiding buzzword (anecdotally and in the San Diego real estate market that I observe) as offices closed merged and downsized. In Coronado, I hear, there were once four offices representing a certain franchise. There is now one.
In fact, because of so many office closures, one might think that it would be difficult to find a real estate office in San Diego, but that is not the case–because a surprising phenomena has been occurring during the last couple of years:
The proliferation of the independent real estate brokerage.
When San Diego’s real estate market shattered, homes may have remained intact, but in defiance of conventional wisdom, small independent brokerages proliferated. Most broke away from large San Diego franchises like Prudential California Realty, Coldwell Banker Residential Brokerage, various Century 21 offices, ReMax and the like.
I’m not sure hard numbers exist, but the anecdotal evidence does. New real estate companies with fun names are dotting the once orderly landscape. Kris and Steve Berg broke away from Prudential California Realty and San Diego Castles Realty and formed –and we are currently in escrow with Pineapple Hut Realty. Then, of course, when Sotheby’s International Realty closed its doors in San Diego, we decided to transform Sotheby’s Murphy Group into San Diego Previews Real Estate.
And I swear there are hundreds dozens of other real estate brokers who have done the same thing.
And rather than sending 6 percent of our earnings up a one-way umbilical cord, we can now spend that money locally and better serve our clients with the money saved. Additionally, the internet has drastically changed the way people shop for homes. Savvy home sellers are demanding a strong online presence for their homes–and also know that Google may tell them more about their prospective Realtor® than any glossy flip chart or resume.
Five years ago, none of us expected that we would be selling homes five years out for less than what they sold for then. Nor did we expect our franchise brokerages to be closing doors and offices.
But someone wiser than I once commented about change and how to avoid ulcers by adapting to what life throws your way:
If you fall in the mud puddle, check your pockets for fish.
….and of course, to be grateful for the unexpected gifts that come our way.
You may also be interested in reading:
When the Tails Wags the Dog
Tips for San DIego Home Buyers
Weasels in the Chicken Coop: Loan Fraud in San Diego
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When the Tail Wags the Dog
October 23rd, 2008 Categories: Carlsbad Real Estate Real Estate News San Diego Real Estate
This is usually a blog about San Diego real estate, San Diego activities– and the rants of our writers.
This time, I am here to announce that we are no longer associated with Sotheby’s International Realty in San Diego. In fact, Sotheby’s International Realty has dropped San Diego entirely–so it is nothing I am taking personally.
Except….
We feel we can offer more stability for ourselves and our clients by navigating our own ship and forming our own real estate company. We have no debt, little baggage, and have enough set aside to carry us through almost any storm.
So we formed our own company. The biggest problem though, was deciding on a name for this new venture.
After many exotic attempts, we ended up settling on the name of our website, San Diego Previews with an explanatory tagline of Previews Luxury Real Estate.
We had always viewed this site as our tail: It wagged and allowed an outlet for our thoughts, discoveries and rants. The tail is usually wagging, sometimes sagging, and sometimes points straight in the air. It was an indicator of what was going on with the body and real estate spirit.
But somewhere along the way, it also became part of our identity, and it just didn’t feel right to come up with an alien name–and feel the obligation to start another site.
So the point of this tale is to explain how we have decided to let the tail wag the dog….
And name our real estate company accordingly: Welcome San Diego Previews and the fine talents of Mike Murphy, Eve Sieminski, Scott Murphy, Wendy Barbour, Daruish Abedian–and we hope, Howard Jennings and Ilene Brodsky:-)
Feel free to give us a call at 877-818-8197!
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