What is happening in the market? Where is the inventory? What about all the foreclosures?
If you have been watching the San Diego real estate market the last six months you might be asking yourself these questions. Here are some line items facts about the market.
Inventory has plummeted. 9,729 active homes 7,137 pending sales!!
New listings are selling quickly, with multiple offers…sometimes over list price.
Median home prices and pending sales have INCREASED 3 months in a row.
There is not nearly the selection we had just six months ago.
Foreclosures are going strong at 1,799 foreclosures in June.
San Diego Unemployment at 9.4% in May from 5.4% a year earlier.
Properties are selling over 98% of list price.
Detailed Market Report : Click PDF Market Report Online Market Report
This is a lot of mixed information that can be very confusing if you are trying to make a decision. Here is our street level interpretation of what we see happening.
Median prices are increasing, but actual prices are not. The really low end was so dominant that median prices dropped dramatically. However, now the middle tier market has come down enough for buyers to get off of the fence. There are more people buying in the $400K-$900K to offset the lower end. This will cause median prices to increase. We are seeing relatively steady prices, not freefalling and not appreciating. Although, we are in a recession and unemployment is high, prices and interest rates have come down so much that there is a VERY strong buyer pool of very well qualified buyers that are making offers. Foreclosures are slow to come on the market but banks are now pricing them very well and they are being sold as quickly as they are coming to market. With low, well priced properties and a strong buyer pool, well priced homes are selling at list price. The bottom line is that the extreme fear of doom and gloom has subsided and buyers are comfortable enough with prices and interest rates that they are willing to buy. There are great opportunities as well as a lot of pitfalls in this market. Make sure you have a plan and work with someone that knows the market and how to use it to your advantage. (Hint…ProFund Real Estate)
On another note, financing has become a little more restrictive. Below you will see a quick breakdown of general guidelines.
Single Family House: 90% Financing up to $417K, 85% from $417K to $697K
Condos: 80% Financing regardless of loan amount.
FHA: 96.% up to $697K. Condo must be on FHA approved list.
Jumbo Financing up to $3 million, 75% Financing with 720+ Fico
Click Here for Single Family Homes Listing in the Last 7 Days!! Central & Coastal San Diego
Click Here To View 202 Featured Homes
Click Here To See 99 New Homes Listed In Last 7 Days!!
ProFund Real Estate….Search Homes Online, Mobile Phone GPS Search, Facebook
As always, don’t hesitate to call or email to discuss what you are looking for!!
Filed under: Market Update - Stats, Uncategorized Tagged: | foreclosures, listings, market trends, san diego real estate
