Welcome to all the new subscribers to our monthly market report. It is always our goal to provide unbiased, professional input on what is happening in the San Diego real estate market and to use the expertise of others to give a well-rounded view. As we all know, the real estate market is not like the stock market, i.e. we can't watch prices on a ticker!
I just checked our local Multiple Listing Service and found that our current inventory level is less than 50% of what it was a year ago and is normally. Right now we have 6,375 detached homes on the market plus 2,602 attached properties (condos, townhomes, etc.). During the last 30 days 2,069 detached homes opened new escrows, so when dividing that number by the total inventory we see about a 3 month supply of homes which puts the market into the seller's favor with prices starting to rise. In addition to those that went into escrow 2,396 detached homes went "contingent", which means they were either short sales or bank owned properties that are awaiting lender approval. Combining those 2 numbers means that over 4,300 of the 6,375 homes on the market went under contract! This means that there was a 1.5 month supply and explains the ultra competitive bidding that is occurring with 20-40 offers happening on many properties.
In the attached home market there are now 2,602 units on the market. Over the last 30 days 1,155 opened new escrows and 1,905 went "contingent", meaning that over 3,000 units went under or are awaiting lender approval. This is less than a 1 month supply!
This has been an extremely frustrating market for buyers and agents alike for the following reasons:
- Prices are being forced up and out of the range of many first time buyers.
- The difficulty in winning a bid makes it nearly impossible for first time buyers to secure the $8,000 tax credit that expires 11/30/09.
- Appraisals are tricky as appraisers compare new sales to older ones at lower prices. This is a classic shifting market issue that has been exacerbated by the new appraisal rules that are so complicated that an 6 page rule now must have an 8 page Q&A attached to explain it!
- We are advising many buyers to set their maximum price in searches about 10% below their purchasing power to allow for over bids.
Following are several links to articles that I noticed during the last few weeks:
http://www3.signonsandiego.com/stories/2009/sep/06/dont-be-among-victims-foreclosure-prevention-scams/?uniontrib
Foreclosure scam warning
http://www3.signonsandiego.com/stories/2009/sep/06/new-rules-home-appraisals-under-fire/?metro&zIndex=161384
Appraisal issues after new regulations
http://www.sacbee.com/topstories/story/2163510.html?ref=patrick.net
Loan mod backlash toward banks
http://rereport.com/sdc/print/SDCNCCRick&RickiUngar.pdf
San Diego Real Estate Report 9-12-09
http://www3.signonsandiego.com/stories/2009/sep/15/housing-prices-county-rise-sales-down/?uniontrib
Prices up, sales down
Rick Ungar is a Certified Distressed Property Expert, solving the foreclosure issue one homeowner at a time. Contact us today to learn about the best options to preserve your credit and buy again soon.
