As is my custom what follows is my take on the local real estate market. Keep in mind that I stress the "local" part as all local markets are different and react to many unique factors. When you read that the real estate market is "soft" or "hot" on a national level that is like saying the average temperature is 70 degrees and to imply from that the temperature everywhere is 70. Sometimes our market is better, sometimes worse than others.
It looks like our local market is still strong. As of today there are 5,339 detached homes available on the market. 1,562 went into escrows during January and another 2,350 went "contingent" (short sales awaiting lender approval) during the month. Using just the new escrow number we have a 3.42 month supply of detached homes on the market. A supply of less than 4 months is normally considered a moderately strong market with prices on the upswing. If you add the 2,350 new contingent listings to the new escrows we come up with a supply of 1.36 months.
The attached (condo) market shows 2,591 units now on the market with 839 opening new escrows and another 1,874 going into the "contingent" status. The new escrow index shows a supply of 3.09 months and 0.96 months when we add the "contingent" listings. Both are strong with prices starting to increase. Multiple offers are still common in the lower price range with sales occurring above the listed price in many cases.
Activity is slower in the higher price ranges with longer on market times being common, due at least in part to tougher financing requirements that make it difficult for move-up buyers to make aggressive moves.
The links below take you to several articles talking about the market in general saying that the number of foreclosures is up but the number of new defaults is down. I personally think that we have seen the majority of the lower priced foreclosures over the last few years but that we should see more short sales in higher price ranges for the next few years. I also think lenders may be more forgiving on those higher priced short sales to avoid taking them back in a foreclosure and incurring an even larger loss.
Enjoy the articles and the perspectives presented by their authors...
http://www.signonsandiego.com/news/2010/jan/27/housing-prices-buck-trend/
SD Home Prices Buck Trend
http://online.wsj.com/public/resources/documents/retro-HAGERTY.html?mod=djemRealEstate
Housing Chart
http://online.wsj.com/article/SB10001424052748704905604575027370647347644.html
National Housing Trends
http://ow.ly/11QLh
California Defaults Slow, Short Sales Increase
Let me know what questions you have. I'm always available to help!
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.
