Consumer expectations for U.S. home prices perked up in December, matching a modest fourth-quarter improvement in the U.S. economy, according to a monthly survey from mortgage market firm Fannie Mae.

For its December reading, Fannie Mae said survey respondents now expect home prices to rise by 0.8% over the next year, up from the 0.2% gain predicted in November.

Views on the direction of the U.S. economy also improved: 22% of respondents indicated a belief that the U.S. economy is on the right track, marking a 6-percentage-point jump from November’s survey.

On personal finances, 40% of respondents said they anticipate their personal financial situation to strengthen over the next year. Fannie Mae noted the response marks the first time since February that a larger share of respondents indicated they expect improved personal finances rather than finances that will remain the same over the next year.

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The number of San Diegans filing for foreclosure and defaulting on their mortgages continued to fall in June marking the 19th consecutive month of decreases, reported real estate tracker DataQuick.

The county recorded 1,353 notices of default in June, which is down 21.8% from a year ago. A notice of default is the first step in the foreclosure process. June's drop marks the 19th consecutive year-over-year decrease for San Diego.

June numbers for San Diego align with the state's. Foreclosures in California fell to a four-year low during the second quarter, from March to June, the monthly DataQuick report said.

"A lot of theories are being floated as to why the numbers are down," said DataQuick President John Walsh, in a statement. "Bank policy changes. Legal challenges. Politics. Holding back temporarily so as not to flood the market."

Walsh added: "The fact of the matter is that no one really knows, outside of lending and servicing industry insiders. One thing is certain: Homeowner distress spreads fastest when home price declines are steepest. And it now appears likely that, barring some new economic shock, the worst of the price declines are behind us,"

Comparing 2011's second quarter to last year's second quarter, both notices of default and foreclosures are down. That's a trend seen throughout Southern California.Southern California recorded 30,384 notices of defaults this second quarter, down 19.5 percent from 2010's second quarter. There were 21,247 foreclosures in the region this quarter, down 13.9 percent from last year's second quarter.

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SOLD FOR $399,000!

Largest model in Pell Place! This bright & spacious corner unit enjoys a large private balcony with north views and is conveniently located on the first level. Large walk-in closets & laundry room. Beautifully upgraded throughout. 2 side-by-side parking spaces. Extra storage room on balcony. Pell Place is located adjacent to top Carmel Valley Schools, Carmel Valley Community Park, Del Mar beaches, and convenient shopping, etc.

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If you plan on moving soon, you should strongly consider selling your San Diego home now rather than waiting. Here are five reasons why:

1.) This is when your house will get the most exposure

Summertime is when most buyers enter the San Diego real estate market. This surge of buyers dramatically increases the exposure for your house . The best chance of getting quality offers (perhaps even multiple offers) is RIGHT NOW!

2.) The number of foreclosures and short sales (the competition) are expected to increase

The good news is that the number of people paying their mortgage on time is increasing. This will lead to less distressed property sales later this year and throughout 2012. The not-so-good news is that there is still a large inventory of existing foreclosures and short sales that will still be coming to market. These San Diego homes will sell at dramatic discounts and will be your competition.

3.) Interest rates are expected to increase which means fewer potential buyers

Interest rates have stabilized recently. However, in the last six months, interest rates have climbed over 1/2%. Every time the rates increase 1/4%, approximately 250,000 buyers are eliminated from qualifying for a mortgage. In an environment of volatile rates, waiting could mean that there will be fewer buyers eligible to purchase your house. It also could mean that you will pay a higher rate on the next home you buy.

4.) Qualifying for a mortgage is expected to get even more difficult

Besides increasing rates, there are other factors that may hinder a buyer’s ability to qualify for a mortgage as we move forward. Lending standards have been getting tighter over the last year. And as the government debates the new proposed guidelines banks are gearing up for even more stringent standards.

This may negatively impact any potential purchaser for your property and may also impact your ability to qualify for your next home.

5.) The timing is ideal if you are plannning on trading up to a more desirable home

Are you frustrated with the fact that you will have to sell your current home for much less than you could have a few years ago? Get over it! Remember the huge positive here: you will be able to afford a far better home in San Diego than you could have a few years back. And, as prices begin to increase again you will enjoy a much larger gain in appreciation on the new home. Now is the ideal time to make that move up!

BOTTOM LINE

If you plan to sell this year, the reasons above prove that selling now makes more sense than waiting. Contact the professionals at Coastal San Diego Properties today to get a FREE MARKET EVALUATION of your home!

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