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Housing Crisis to End in 2012 as Banks Loosen Credit Standards

Good news continues as more people look to 2012 to be a strong year for the La Jolla housing market. Buyers that have been looking to purchase La Jolla real estate for the past few years are becoming more confident that the worst is over. Sellers of La Jolla real estate are seeing an increase in interested buyers. According to the article below one of these reasons for increased confidence: loosening credit. Read below for more details on banks loosening credit standards.

Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.

The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.
Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.
However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.
Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.
Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”
In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.
While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.
Additionally, Capital Economics says “any improvement in credit conditions won’t be significant enough to generation actual house price gains,” and potential ramifications from the euro-zone pose a threat to future credit availability.

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Mortgage Rates Reverse Course

With all the positive assessment of the housing market mortgage rates reverse from an all-time low to now starting to increase.

Freddie Mac reported Thursday that mortgage interest rates have done a 180 and are now starting to climb, buoyed by positive housing data over recent weeks which show the market ended 2011 on a high note. Still, interest rates on home loans remain extremely low by historical standards.

For the week ending January 26, the 30-year fixed-rate mortgage averaged 3.98 percent (0.7 point), reversing its previous three-week trend of setting all-time record lows. Despite the jump, this marks the eighth consecutive week the 30-year fixed rate has remained below 4.00 percent.
The 30-year rate jumped 10 basis points over the past week, up from 3.88 percent reported by the GSE last Thursday. As a point of comparison, though, last year at this time the 30-year averaged 4.80 percent.
Freddie Mac’s study puts the 15-year fixed-rate mortgage at 3.24 percent (0.8 point) this week, up from last week’s average of 3.17 percent. A year ago at this time, the 15-year rate was averaging 4.09 percent.
The 5-year adjustable-rate mortgage (ARM) averaged 2.85 percent (0.7 point) this week. It was 2.82 percent last week and 3.70 percent this time last year.
The 1-year ARM was the only loan product in Freddie’s study that did not show upward movement, but there was no downward movement either. It came in at 2.74 percent (0.6 point), matching last week’s average. A year ago, the 1-year ARM averaged 3.26 percent.
Frank Nothaft, Freddie Mac’s chief economist, cited several pieces of positive housing data that point to improvements in the marketplace.
New construction of single-family homes rose 4.4 percent in December to an annualized rate of 470,000. That’s the most since April 2010, Nothaft noted.
Existing home sales increased 5.0 percent at the end of 2011 to an annualized sales pace of 4.61 million units – the largest amount since May 2010.
In addition, Nothaft points out that pending home sales in November and December averaged the highest reading since the March and April 2010 period.
Freddie Mac’s weekly mortgage rate survey averages data gathered from 125 lenders across the country.

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Housing May Turn the Corner in 2012: CoreLogic

As a La Jolla real estate agent I appreciated Fleming’s big picture explanation of the housing market. Fleming is not alone in his thinking, which is good news to homebuyers, sellers and La Jolla real estate agents. As a La Jolla real estate agent I echo Flemmings assessment and agree that 2012 looks to be a year of positive change and growth in the market. Read article below for detailed information.

CoreLogic’s chief economist Mark Fleming says housing statistics and the duration of the downturn to date indicate 2012 may be the year the housing market begins to turn the corner.

In the first release of CoreLogic’s new MarketPulse newsletter Wednesday, Fleming explained his rationale for such an assessment.
He notes that housing is an industry with long business cycles. Regional housing recessions have typically taken anywhere from three to five years to find their bottom, and Fleming says the national housing recession has behaved similarly in that it has bounced along a bottom for the past two years.
Fleming points out that housing affordability is rising dramatically due to a combination of home price deflation and rock-bottom mortgage rates. In fact, he says, after adjusting for inflation, this has been a “lost decade” for housing as prices are the same as at the beginning of the millennium.
“The time is right in 2012 for prices to begin growing again,” Fleming said, “and housing affordability will put a floor under any further significant declines.”
Fleming says he will be watching the spring and summer buying season closely for positive signs of demand.
He points out that households are paying off their debts and at the same time accessing credit more easily, with some even adding Home Equity Lines of Credit in the third quarter of last year – the first such movement for these second-lien mortgage products since the financial crisis began.
Fleming cites a quarterly survey by the New York Federal Reserve Bank, which shows total household debt continues to decline. At the same time, consumer sentiment rebounded strongly in the latter part of 2011, posting a six-month high in December – an indication that consumers’ confidence in the strength of the economy is growing, according to Fleming.
Most housing statistics basically moved sideways in the latter part of 2011, but Fleming finds several positives in the numbers. Although market indicators are coming off of very low levels, he notes that both existing-home sales and single-family housing starts have begun to increase, homebuilder confidence is improving, and affordability is at an all-time high.
Putting all of these statistics together suggests that while there is a very long way to go, the housing market is likely to sustain these upward movements in 2012, according to Fleming.
“While we cannot say with a high degree of certainty what 2012 has in store for us, indications based on the latter part of 2011 are that both the broad economy and the housing market are moving toward positive growth in 2012,” Fleming said.
He concedes that some impediments do exist, including slower global economic growth, a recession in Europe, and fiscal and political uncertainty in the United States.
But Fleming says when you look at the big picture, “we are bullish on the prospect of improving economic performance in 2012 from 2011.”

Article written by: Mark Flemming – CoreLogic’s Chief Economist

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Multiple Signs Point to Real Estate Rebound

Another encouraging article for La Jolla real estate investors, stating reasons for an increase in the real estate market. La Jolla real estate has always had an appeal to many tourists around the globe. Homeowners continue to make improvements to their La Jolla homes and fix up their communities to attract tourists from all over. Read on for more details.

The past few weeks have showcased numerous signals that the real estate market is on the rise. Recently, we have reported statistics pointing to an industry turnaround, including a 15 percent rise in housing starts in September; a surge in builder confidence in October, an increase in mortgage applications and a slew of regional market improvements across the country.

A recent Marketwatch story written by Amy Hoak points out that housing markets in the Great Plains, including those in North and South Dakota, Texas, Wyoming, Nebraska, Louisiana and Iowa, are showing the most signs of strength these days, according to a recent report from Veros, a risk management and valuation services firm.

Hoak notes that Bismarck, North Dakota., is expected to be the strongest market in the country in the year ahead, with housing values appreciating at a 5.6% clip, according to Veros. Other markets projected to be among the strongest in the year ahead include Honolulu; Fargo, North Dakota.; Harrisburg/Carlisle, Pennsylvania; and Pittsburgh. Washington, D.C., and Boston remain strong city markets.

Hoak writes that while not many markets are fully rebounding, at least a good number of them likely won’t see values fall at quite as rapid a pace as in recent years, according to the report.

“Overall, the recovery in the housing market is limited to just a few markets and is taking a long time to occur. The encouraging news is that many markets are no longer expected to be rapidly declining,” says Eric Fox, vice president of statistical and economic modeling for Veros.

The weakest U.S. markets are in Nevada, inland areas of California, Washington and Oregon, according to the report. The weakest market in the year ahead: Bakersfield, California, where foreclosures have been a huge problem.

Hoak wraps up the story with words of assurance; While prices aren’t on the upswing in many places, at least they’re not expected to fall that rapidly in the coming year.

Information provided by: Susanne On October 24, 2011 @ 4:15 pm In Consumer News and Advice,Finance and Economy,Real Estate Information,Real Estate News,Real Estate Trends,Today’s Marketplace,Today’s Top Story,Today’s Top Story

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Plan to Sell La Jolla Landmark Upsets Locals

La Jolla real estate and many of the surrounding buildings are historical. Below is an article that highlights just one of the many treasured historical buildings that La Jolla locals cherish. La Jolla real estate is more than just a house. Many La Jolla homes and historical buildings have a story that make living in La Jolla a one-of-a-kind community. Read further for the latest news regarding the sale La Jolla post office.

For decades, the people of La Jolla have met at the post office on Wall Street to rally support for one cause or another. The next cause may be the post office itself.

The U.S. Postal Service announced this week that it will move its services elsewhere and sell the property on which La Jollans have gathered since 1935 to put their stamps on everything from letters to the community itself.

An appraisal won’t be made public, but the land — 14,451 square feet at the corner of Wall Street and Ivanhoe Avenue in the heart of La Jolla’s village — may fetch the federal government several million dollars.

Pascal Aubry-Dumand, a commercial real estate broker for Cushman & Wakefield of San Diego who specializes in La Jolla, said the property could be worth $3 million depending on the building’s size.

“This is a class A location,” he said. “It’s hard to tell what the buyer would do. … It’s hard to put a price on this because it hasn’t been on the market for 77 years.”

In September, the postal service hired CB Richard Ellis to handle land transactions nationwide that might help turn around the agency, which had about $70 billion in expenses and a nearly $5 billion budget shortfall last year.

The postal service set an all-time high for mail volume in 2006 by delivering 213 billion pieces. It ended its most recent fiscal year in September having distributed 167 billion pieces, a 22 percent decline.

The decision to sell the La Jolla location is based on dollars and sense, said postal service spokeswoman Eva Jackson. The nine workers there need less than half the space they currently have for business, she said.

Jackson added that no amount of protest would alter a basic premise.

“Even if they rise up and get upset, that doesn’t change the facts that we are running out of money, we’re in a very bad financial situation, this piece of property is very valuable and we’re not utilizing the space,” she said.

P.O. box numbers, business hours and the separate 92037 postmark that La Jollans have long maintained won’t change. Jackson said a new site is expected to eventually open within a mile of the Wall Street building.

Outside the post office Thursday, reaction spanned from a shrug of the shoulders to acceptance and anger.

“We all have to do what we have to do for financial things,” said Sheila Lebovitz, who used to own Sluggo’s Hot Dogs on Fay Avenue. “I had to move out of La Jolla because I couldn’t afford to live here anymore.”

She and her husband now reside in Rancho Bernardo but maintain a La Jolla P.O. box as their mailing address.

“I hate that every traditional thing is changing,” said Lebovitz, 74. “I know life has to go on, but, whatever, I understand.”

Janet Evans, another longtime La Jollan, is less forgiving.

“The closure idea struck me as outrageous and horrifying and heartbreaking because that post office has been the town’s meeting place for my entire life,” she said.

When the building opened, Evans’ father earned $40 a month as a postal clerk there. He didn’t retire until he had a heart attack at work in 1967.

She is hopeful that a sale and relocation won’t happen. “I don’t think they’ll get enough money in this down market to justify disposing of something so unique and beautiful,” she said.

A plaque by the entrance commemorates the building’s 75th anniversary in September 2010. To its right, a cornerstone dating back to 1934 hides behind neatly trimmed hedges.

Inside the lobby, a mural of a bucolic La Jolla setting wraps around a door frame. The painting, “Scenic View of the Village,” has been restored once since 1935, when La Jollan Belle Baranceanu created it as one of at least three Works Progress Administration murals she did.

Carol Olten, historian at the La Jolla Historical Society, hopes that both the mural and the building survive.

“I’ll miss it as a place, personally, because I’m one of those people who still mails letters and goes and buys stamps,” she said.

“This used to be the center of all the uproar and furor that ever took place in La Jolla,” said retired local journalist Pat Dahlberg. “People would get a card table out here and get signatures signed up. They stopped the high-rise movement right here with their petitions.”

Angeles Leira, a retired city planner who has lived in La Jolla for more than 50 years, began working to get the building a national historic designation in the months leading up to its 75th anniversary.

The effort didn’t go far, but Leira said postal officials backed it.

The building’s distinctive features include a clay tile roof and muted white exterior that are set off by trim painted an avocado shade of green. A set of similarly green window shutters is decorated with twin cutouts of an eagle with its wings outstretched.

Article written by: Matthew T. Hall with UT News San Diego

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2012 Home Sales: Positives on Many Fronts

Positive news continues for La Jolla real estate and real estate nationwide. The article below is upbeat on many fronts and can only mean good news for La Jolla real estate. 2012 looks promising for buyers of La Jolla real estate.

NAR released its latest pending home sales index figure last week and for the second month in a row the index is up. But more than that, the index has broken 100. This is significant because the only time since the housing boom collapsed that the index has broken 100 is when the home owner tax credit was in effect. The fact that the index has returned to that level a year since the credit has been in effect means the housing market is strengthening completely on its own, without any stimulus.

NAR Chief Economist Lawrence Yun is upbeat about 2012 because in a number of areas indicators are pointing upward. Not only are home sales up but housing starts are up and home prices are stabilizing in many markets and heading up in some. In areas where they’re still down, the declines aren’t that great. More fundamentally, broader U.S. economic signs are looking positive, including the all-important jobs picture. About 100,000 job are being created a month, and that could rise to 150,000—still not a quick enough pace to get us back to where we were before the downturn but the headwinds are in the right direction.

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Market Update

The La Jolla real estate market continues to show signs of optimism as we end 2011. Sellers of La Jolla real estate have adjusted pricing to meet the demand of today’s buyers. Overall the median price for homes remains flat with an increased number of homes selling in a slightly shorter period of time. Still, the future for La Jolla real estate has several opinions. We felt this article was objective and gave many perspectives.

After half a decade of withering sales and slumping prices, there are strong and diverse signs that the single-family housing market is poised for a rebound.

In some metropolitan areas, the market has bottomed, with both sales and prices on the rise and foreclosures on the decline.

This contrarian – and largely overlooked – thesis flies in the face of the persistent gloom that has nagged the industry since 2007, when the subprime crisis flared.

Industry analysts and players cite a number of reasons – some traditional (employment), others unique to the post-credit bubble era (foreclosures) Â – for the long-awaited sea change. An analysis of industry and government data also support the forecast.

“It has become increasingly apparent to us that the pieces for a housing rebound next year are beginning to fall into place,” declared Barclays Capital analyst Stephen Kim in a recent note to investors.

Proponents admit that the nascent rebound could easily be derailed, but stress that after years of government efforts to support sales and prices as well as the volatile impact of foreclosures, the market has regained a measure of normalcy.

“With the exception of really hard-hit markets, the vast majority is ready to turn around,” adds Jerry Howard, president and CEO of the National Association of Home Builders, NAHB. “The Washington, D.C., area is not only ripe for recovery, they need to start building units.”

The iShares Dow Jones US Home Construction Index Fund (NYSE Arca: itb), for example, is up some 38 percent, while the S&P 500 is up about 21 percent.

Nevertheless, skeptics overwhelmingly outnumber the optimists, given the false-starts of previous years, the economy’s sub-par performance, a new wave of distressed properties and the capacity for the European debt crisis to spook business, consumers and investors.

“I think it’s premature,” says Richard Smith, CEO of Realogy, the nation’s largest real estate company, whose brands include Century 21, Coldwell Banker and Sotheby’s International. “We see little indications here and there. Transaction volume is improving. Prices are still under pressure. This isn’t going to be one of those spiked robust recoveries.”

Smith is echoing the conventional industry calculus: that price increases follow sales growth amid consistently strengthening demand.

There’s been little conventional, however, about this housing slump, which is one reason it’s had so many false bottoms. Among its many firsts – housing starts fell through 1 million annual units, foreclosures topped 2 million in three consecutive years, and home prices declined on a national basis.

The catalysts to recovery are mostly the same: for potential buyers, residential rents have now risen enough to consider buying; existing-home inventory is the lowest in five years, while that of new homes is at a 40-year low; affordability is at a record high; delinquencies have peaked; consumer confidence is on the rise ; and job growth is accelerating.

For investors, with a continuation of the gold rally in question, real estate is beginning to look like a viable inflation hedge alternative, while rising rents mean greater profits.

That thinking may help explain why the iShares Dow Jones US Home Construction Index Fund (NYSE Arca: itb), a broad barometer for the housing market, is up some 38 percent from the stock market’s October bottom, while the S&P 500 is up about 21 percent.

Finally, there’s the intangible fatigue with bad news, and a desire to end the negative feedback loop.

“We believe there is sizable housing demand that could be released into the market,” says Lawrence Yun, chief economist of the National Association of Realtors, NAR.

The NAR is forecasting existing home sales will rise 5 percent in both 2012 and 2013; prices will edge up 2 percent in each of those two years, then 4 percent in 2014.

The NAHB is forecasting a 5.1-percent increase in new home sales and a 10-percent increase for new home starts in 2012.

Jobs, Jobs, Jobs

A turnaround in the housing market will require continued improvement in the job market.

The economy has created jobs 13 months in a row for a total of almost 1.9 million. Weekly jobless claims have been routinely below the key level of 400,000, and the national jobless rate is down to 8.6 percent.

There are already signs in some markets that an improving employment picture is boosting housing demand and sale prices.

In cities such as Tampa, Fla., South Bend, Ind., Grand Rapids, Mich., Raleigh, N.C., Wichita, Kan., and Green Bay, Wis.., the median sales price of an existing single family home increased 1-2 percent in the third quarter, during which time the jobless rate and/or payrolls growth improved dramatically.

Even in the Cape Coral-Fort Myers, Fla. metropolitan area – considered the epicenter of the foreclosure crisis a few years ago – prices were just 1.4 percent lower in the third quarter than the previous year.

A new index by the NAHB and First American, the Improving Markets Index, IMI, launched in September, tracks housing markets throughout the country that are showing signs of improving economic health. Thirty cities – including San Jose, Pittsburgh, New Orleans and Winston-Salem, N.C. – are showing growth in permits, sales and employment.

In San Diego – where in the last year the jobless rate has fallen from 10.4 percent to 9.7 percent and 24,000 jobs have been added – home inventory is down to two months; in some areas of San Francisco (9.4 vs. 10.3 percent), it is one month.

More broadly, 40 percent of all states showed existing home sale increases on both a quarterly and annual basis in the third quarter, according to National Association of Realtors data. That includes high foreclosure-rate states, such as California, Georgia, Michigan and Utah. All but six states showed double-digit gains year over year.

Location, Location, Location

There’s even a strong case to be made that the foreclosure crisis is easing.

“The pipeline of distressed property is plentiful but less than last year,” when foreclosure activity hit a record 2.18 million, says Yun.

For the first nine months of 2011, foreclosure activity is down sharply from the same period last year (26.59 percent), whether it is the worst-off states – (Florida, 54.98 percent; California, 31.51 percent; Utah, 27.41 percent) – or better-off ones (New York, 46.57 percent; Mississippi, 33.25 percent; South Dakota, 26.59 percent), according to RealtyTrac, which tracks the data.

Third-quarter foreclosures (610,337) were up 1 percent from the previous quarter but down 34 percent from the year-ago period.

The wild card right now is an impending wave of new foreclosed properties on the market, following the removal of state moratoria and the settlement of state and federal lawsuits with lenders and loan servicers.

It’s unclear how many properties will hit the market, but conservative estimates put the number at over a million.

Still, of the top 20 markets in the new wave, nine are in California, five in Florida and two in Ohio, according RealtyTrac, so the impact will be fairly concentated.

Another question is whether that wave will be a tsunami or merely a breaker. If the market is in fact recovering, why would banks want to weaken it again by deluging it with cheap properties.

“You could see them trying to gauge the market like speculators,” answers Howard.

Kim of Barclays is among those who say the threat is exaggerated, perhaps misunderstood. He estimates that 40 percent of the foreclosed properties haven’t had a payment made on them in two years, which means they are in poor condition and thus unattractive to many buyers.

“The deterioration has been great,” he says. “It flies in the face of all the bearish arguments.”

Kim’s thesis is that there are now two kinds of buyers in the market; those who’ll take a chance on a bargain-priced, distressed property and those who’ll only make a conventional transaction. He says it helps explain why the Core Logic data he used for his latest report shows non-distressed prices flat or slightly higher in the past year.

“Even if the banks decide to move their inventory more aggressively, and I suspect they will, it’s OK because the buyer is making a distinction,” explains Kim.

“There’s a ready appetite for it,” adds Smith of Realogy, who agrees that there’s substantial pent-up demand for housing in general but also great uncertainty. “If you can relieve consumers of some of that uncertainty, then I can see a nice little recovery.”

That’s the psychological dimension of the wild card – the negative feedback loop that has plagued housing.

Optimists say most of the uncertainty and fear is gone.

“The major driver of negative sentiment was that prices were going down across the market by large amounts,” says Kim of Barclays. “Buyers need to see a stabilization.”

A contributing element to that is the unwinding of government intervention – whether to artificially spur demand – as was the case with the first-time buyer tax incentive program of 2009 and 2010 – and/or to retard and prevent foreclosures.

Many regard those efforts as largely ineffective, if not counter-productive because they delayed the inevitable – a deep descent to a market bottom, which has finally been touched.

“The numbers you’re looking at you can trust,” says Kim. “There are no exogenous factors.”

Though tight lending conditions and forthcoming regulations of the Dodd-Frank legislation are still an issue for some, sweeping housing finance reform is off the agenda for at least the next year.

“You’re back to the natural forces of the market,” says Howard of the builders association.

Article provided by CNBC

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Winners: Best of La Jolla 2011

Being a part of the community is one perk to owning a La Jolla home. Many La Jolla homes are in walking distance to winners of this year’s Best Of. Owning a La Jolla home means being a part of a tight knit community that offers only the finest of things.

Below are the results of La Jolla Light’s online Readers Poll for the 13th annual Best Of election for favorite local businesses, restaurants and people. You’ll find some of the same names listed as in years past, as well as some new places on the La Jolla scene, and some who took honors in more than one category.

Congratulations to all the winners and the second- and third-place finishers — and thanks to all our readers who took the time to vote.

Best Restaurant

George’s at the Cove
The Steakhouse at Azul
NINE-TEN

New Restaurant

Crab Catcher Market Café
Panera Bread
Rubio’s Fresh Mexican Grill

Breakfast

Harry’s Coffee Shop
The Cottage
Brockton Villa

Lunch

Aroma Café
George’s at the Cove
Girard Gourmet

Takeout

Burger Lounge
Bubba’s Smokehouse BBQ
El Pescador & Girard Gourmet

Brunch

La Valencia Hotel
Beaumont’s
Brockton Villa

Family Restaurant

Beaumont’s
Barbarella’s
The Cottage

Outdoor Restaurant

George’s at the Cove
AR Valentien at The Lodge at Torrey Pines
Brockton Villa

Burger

Burger Lounge
Smashburger
Bubba’s Smokehouse BBQ

Dessert

Michele Coulon Bakery
The French Gourmet
Girard Gourmet

Margarita

Alfonso’s
Su Casa
Jose’s Court Room

Pizza

Pizza on Pearl
Extreme Pizza
Carino’s

Sandwich

Girard Gourmet
El Pescador
Bubba’s Smokehouse BBQ

Sushi

Sushi on the Rock II
Zenbu
Aloha Sushi

Seafood

El Pescador
Crab Catcher
The Marine Room

Steak

Fleming’s
The Steakhouse at Azul
AR Valentien at The Lodge at Torrey Pines

American

Beaumont’s
Harry’s Coffee Shop
Karl Strauss

Chinese

Mandarin House
China Chef
Fugu’s

Mediterranean

Marketplace Grille
Piatti
Marrakesh

French

The French Gourmet
Tapenade
Maitre D

Italian

Piatti Ristorante
La Dolce Vita
Café Milano

Mexican

Alfonso’s
Su Casa
Don Carlos

Thai

Spice & Rice
La Basil Thai
Chedi Thai

Bakery

The French Gourmet
Brick & Bell Café
Girard Gourmet

Café

Brick & Bell Café
The Living Room Café
Come On In Café

Catering

The French Gourmet
Giuseppe
Girard Gourmet

Coffee Shop

Bird Rock Coffee Roasters
Pannikin
Brick & Bell Café

Wedding Venue

1. La Valencia Hotel
2. Darlington House
3. Cuvier Club
3. The Lodge at Torrey Pines

Ice Cream/Frozen Yogurt

Baskin Robbins
Froglander’s
Cold Stone

Pharmacy

Burns Drugs
CVS
Pharmaca

Furniture

Seaside Home
Roche-Bobois
Etceteras

Rugs

San Diego Rugs
Aja
Prospect Rug

Bank

Wells Fargo
Bank of America
Chase

Hotel

La Valencia
The Lodge at Torrey Pines
Estancia La Jolla Hotel & Spa

Best Men’s Apparel

Ascot Shop
Armani
A Better Deal

Men’s Formal Wear

Ascot Shop
Armani
A Better Deal

Women’s Boutique

Kerut
Sigi’s Boutique
La Donna

Shoes

Euro Comfort
LJ Shoe Gallery
Rangoni

Eyewear/Sunglasses

La Jolla Optique
Dr. Trainer
Optical Shop of Aspen

Jewelry

Bower’s Jewelers
Jewels by the Sea
CJ Charles

Dry Cleaner

Margaret’s
La Jolla Cleaners
Lele’s

Florist

Adelaide’s
Bridget’s Blooms
Bloomers

Grocery

Vons
Jonathan’s
Whole Foods

Housekeeping

Merry Maids
Rene’s of La Jolla
The Maids

Travel Agency

Cadence
Worldview Travel
Chayet Travel

Insurance Agent — Three Way Tie

1. La Jolla Insurance Services
1. Nigel Mallett — Farmers
1. Terry Hudkins — State Farm

Hair Salon

Alessandro
Christina Q
Model Call

Day Spa

SK Sanctuary
The Lodge at Torrey Pines
Estancia La Jolla Hotel & Spa

Health Club

24 Hour Fitness
La Jolla Sports Club
Bird Rock Fit

Yoga

La Jolla Yoga Center
Bikram
Prana

Senior Living

Casa de Mañana
Seasons at La Jolla
Chateau La Jolla

Art Gallery

Contemporary Fine Art
Alcala Gallery
Quint Gallery

Dentist

Dr. Alicia Kennedy
Dr. Joseph D’Angelo
Dr. H. Kent Reed AND Dr. Phillip Burgess

Dermatologist

Dr. Scott Boughton
Dr. Howard Milstein
Dr. Susan Stuart

Plastic Surgeon

Dr. Stephen M. Krant
Dr. Robert Singer
Dr. John Smoot

Contractor

Beacham Construction
Dewhurst & Associates
Four by Four

Financial Planner

Scott Kyle — Coastwise Capital Group LLC
Frank Pedace — Morgan Stanley Smith Barney
Avelino Cortina III AND Matt Murphy — JP Morgan Chase

Trainer

Brandie Sharpe & Catherine Cox — Crossfit La Jolla/Sharpe Fitness
Ethan Kopsch — Bird Rock Fit
Josh Liberty — La Jolla Sports Club

Information provided by La Jolla Lighthouse http://www.lajollalight.com/bestof2011/

As you peruse through the list, remember the merchants, restaurateurs, hoteliers and professionals listed here are what make The Jewel a great place to live, work and visit. Please support them by shopping and dining at and frequenting their establishments.

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Stronger Lure for Prospective Home Buyers

While it appears that nationwide it is still cheaper to rent than buy, the gap continues to close. La Jolla real estate is still at the top of many home buyers’ lists to buy. La Jolla real estate is desired for its amazing schools, active lifestyle and community. La Jolla real estate remains has shown to be less volatile and is still in demand by many local and international buyers, despite the ups and downs of the economy. For more information regarding affordability of owning a home see below.

Home prices and mortgage rates have fallen so far that the monthly cost of owning a home is more affordable than at any point in the past 15 years and is less expensive than renting in a growing number of cities.

Where Housing Is Headed

The Wall Street Journal’s third-quarter survey of housing-market conditions in 28 of the nation’s largest metropolitan areas found that home values declined in all but five markets compared with the second quarter, according to data from Zillow Inc. Meanwhile, rent levels have risen briskly across the country and mortgage rates, hovering around 4%, are the lowest in six decades.

As a result, monthly mortgage payments on the median priced home—including taxes and insurance—are lower than the average rent levels in 12 metro areas, according to data compiled for The Wall Street Journal by Marcus & Millichap, a real-estate brokerage that tracked 27 metro areas. It remains less expensive to rent than to buy in 15 cities. But affordability hasn’t done much to lift the sagging housing sector because many would-be buyers are unwilling to purchase a home or unable to qualify for a mortgage.

“It’s one of the most striking developments of the housing downturn,” said Paul Dales, an economist at Capital Economics. “The initial building blocks for a recovery are in place, but the legacy of the recession is really preventing households from taking advantage.”

In Atlanta, which had the most favorable values for owning versus renting, the monthly payment on the average home was $539 assuming a 20% down payment during the third quarter. By contrast, the average asking rent stood at $840, according to the Marcus & Millichap data.

But real estate agents and economists say the trend hasn’t boosted demand. That is because affordability alone hasn’t been enough to overcome the obstacles in the way of a housing recovery. Some homeowners who would like to move up to larger properties are stuck because they can’t sell their homes.

Owner’s Advantage

Also, while the monthly carrying costs on a mortgage are lower than average rents in some cities, home ownership carries other costs—including taxes, insurance, homeowner association dues and maintenance—which may dissuade some potential owners.

Other would-be buyers can’t qualify for mortgages because lending conditions are tight or because they don’t have enough equity in their current homes to use as a down payments. “The reality of coming up with the down payment and the loan-qualification standards makes things much different than the raw numbers suggest,” says Hessam Nadji, managing director of Marcus & Millichap. And even those who may qualify remain skittish about buying property in a market where prices could fall amid foreclosures and weak job growth.

Ryan Young illustrates the point. He is under contract to buy a three-bedroom home in Washington Grove, Md., that will have monthly mortgage, tax, and insurance costs for around $150 less than the $1,900 he is paying to rent a slightly smaller house in Bethesda, Md. He qualified for a 30-year mortgage with a 3.95% fixed rate. Still, Mr. Young says he is cautious about owning his first home with the prospect of future price declines. “Buying a house is not a good financial decision, per se, but we needed a bigger place,” said the 35-year-old scientist, “and we don’t want to move every couple of years into a new rental.”

Other cities where owning is now cheaper than renting include Detroit, Minneapolis, Orlando, Las Vegas, Miami, St. Louis, Chicago and Phoenix.

Monthly Costs: Rent vs. Own

Home ownership is also looking more affordable because after several years of declines, apartment rents will rise by around 4% this year, says Mr. Nadji. He says rents are poised “to pick up even more momentum across the country next year.”

Even cities where it is still cheaper to rent than own have seen big boosts in affordability. In San Diego, the monthly cost of owning a home has averaged around 83% more than renting over the past two decades. During the third quarter, owning was 22% more expensive than renting, according to John Burns Real Estate Consulting.

Associated Press
A new development in Canonsburg, Pa. The inventory of homes on the market has fallen from levels seen a year ago, as prices and mortgage rates continued to decline.

Mortgage rates are a big reason why affordability continues to improve. In 1991, a $1,700 mortgage payment allowed a borrower to take out a $200,000 mortgage. Today, it gets that homeowner a $350,000 loan, a 77% increase in borrowing power, says Dan Green, a loan officer with Waterstone Mortgage, in Cincinnati. At the same time, low mortgage rates aren’t spurring sales because few analysts expect rates to rise anytime soon. The Federal Reserve in August said it would keep rates at ultralow levels for two years. In a normal interest rate cycle, “when they go low, they don’t stay for very long, and people jump in,” said Mr. Dales. “This time, there is no urgency.”

Affordability could continue to improve as prices slide even lower in coming months. Price declines are likely because the share of “distressed” sales, including bank-owned foreclosures, tend to rise in the winter, when traditional sales activity cools. Banks are often much quicker to cut prices to unload properties quickly, which means that the greater the share of “distressed” sales, the more prices tend to fall.

One hopeful sign is that inventories have fallen from their bloated levels of one year ago. All 28 cities in The Wall Street Journal’s latest survey saw homes listed for sale fall from one year ago, when markets were reeling with a substantial overhang of properties amid a big drop in demand. Visible inventory was down sharply in several markets, including by almost half in Miami and 40% in Phoenix.

Low inventories have spurred more bidding wars at the low end of the market as investors compete for homes that they can convert into rentals. In Sacramento, it would take just 2.5 months to sell the listed inventory at the current sales pace. Las Vegas has a 4.3 month supply of inventory, according to John Burns Real Estate Consulting. But the potential supply of homes is much bigger because banks have yet to process hundreds of thousands of potential foreclosures.

Written by: NICK TIMIRAOS – Linkedhttp://www.linkedin.com/in

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La Jolla Christmas Parade & Holiday Festival

The La Jolla Christmas Parade is one of the many joys of owning a home in La Jolla. La Jolla real estate offers a unique sense of community. For 54 years La Jolla residents of La Jolla have been bringing in the Christmas spirit with live music, entertainment, delicious food and Santa. For details see below.

Sunday, December 4th, 2011 at 2 pm

The 54th Annual
La Jolla Christmas Parade & Holiday Festival
“Classic Christmas ”
Parade Day Events Schedule

Equestrians Begin to Arrive at 10:00 am

Judging of Floats at 12:00 pm

Antique Aircraft Fly over

Parade Begins at 2:00 pm

Holiday Festival Begins at 3:30 pm

Photos with Santa at Rec Center at 3:30 pm

Christmas Tree Lighting at 4:30pm

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