San Diego Home Sales Are Down Again – Good Morning everyone, it’s rather cold and overcast yet again today. I don’t know what more of a “roller coaster ride” these days, the weather or the stock market. Last week we saw the DOW yoyo 500 points every other day creating the largest one day market swing the DOW has ever seen. The weather – well, it’s just lousy . . . hopefully things will warm up a bit and we’ll start to see more consistency within the markets as well.
There was a report released on Southern California Home Sales this morning illustrating what some of us knew but jut not by how much. Sales in Southern California fell again by 4.5 percent last month from a year earlier. The blame is being directed at hard to obtain Mortgages and the U.S. debt crisis that seems to have rattled the nerves of new buyers.
A total of 18,090 houses and condominiums sold in July in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties, this is a 12 percent decline from June. The median price paid for a home was $283,000, down 4.1 percent from July 2010 and the fifth (5th) consecutive decline on a year-over-year basis. Here is San Diego we are seeing a very mixed bag.
Central San Diego saw a 7.8 percent drop in Single Family Home Sales, condominiums saw a 4.4 percent drop in sales activity. East San Diego County saw a 7.69 percent drop in sales. Condominiums in the same area saw 6.73 percent drop as well. North County Inland areas saw a 4.4 percent drop, much less than what had been expected. All of Escondido saw positive numbers except for the western portion of the city, it was down 5.0 percent. Coastal North County saw a drastic reduction in sales prices in areas we had not seen any major market decreases within.
Cardiff by the Sea saw a 14.75 percent drop in prices, that’s HUGE considering the median price point in that community is over 1 million dollars. Solana Beach saw a 37.0 percent drop – OUCH ! that’s the largest single month loss that Solana Beach has seen since the start of the market slide in 2007. Overall San Diego County Home Sales figures are down 5.58 percent; this is above the average for the Southern half of the State.
Looking at the market over the next several months, anticipating what may happen when the temporary lending guidelines (loan limits) are changed back to pre-market correction levels, I expect we will see that impact the middle to low-high end home sales figures quite drastically. The vast majority of buyers who can currently qualify is greatly limited. Add in a premium for a new 30 year fixed or 5/1 ARM of say 1.5-2.0 percent and you create a market stall. Factor in the usual slow down that we see in over the holidays and you have the ingredients for creating a malignancy within the 4th quarter.
Understanding today’s real estate market is more than speaking to your local realtor to see what they say. It’s more important than ever for a buyer or seller to do their homework and speak to a qualified San Diego Realtor who knows the market and understands what it takes to get the deal done. Short Sales are still the predominant sales transaction in many areas throughout San Diego County. Understanding not only the process(s) involved but most importantly what a client needs to know before going into the Short Sale and after the Short Sale closes in imperative. If you are considering buying a Short Sale or Foreclosed home then you must contact me before considering writing an offer.
All call today to my office is the first step in getting a firm understanding as to what is needed and how to accomplish the best possible results. Feel free to contact my office today for a FREE sales consultation with NO obligation.