Sun Warm Weather and Sales Figures – Good afternoon, it’s another beautiful day in paradise. Hopefully everyone got out and was able to enjoy the sun this weekend, I know I did. My wife and I decided to take our 9 month old French bulldog (Remy) out on the boat this weekend. I can honestly say is the funniest thing you will ever see is watching a dog that resembles a pot belly pig swim around in a bright orange life jacket – priceless.
One of my clients called me over the weekend after he read a report on June sales here in San Diego. He had asked that I look into it and see what I can find out. His concerns are how things over the next 3 months are going to affect his ability to sell his home at a price he is comfortable with. Unfortunately he is like many of you that have either little or no equity and need to get out. With the looming debt crisis and changes coming to the lending community in October, now is the time to really sit down and take a look at what is important. If you are contemplating selling your home, now is the time.
Home sales in San Diego County dropped 11.4% in June, compared to the same month a year ago, while prices dipped by 1.6%.
A total of 3,444 homes sold last month, compared to 3,885 in June 2010. The median price of a home in San Diego County in June was $330,000, down from $335,500 in June 2010.
A total of 20,532 new and resale houses as well as multi-family units (condos) sold in Los Angeles, Riverside, San Diego, Ventura, and San Bernardino and Orange counties in June. That was up 11.6% from 18,394 in May, but down 14 percent from 23,871 in June 2010.
The housing market continues tremor. One minute all is well, things seem to stop moving, and then – bam, we have another viscous drop.
Another large, lingering problem is the mortgage market. Qualifying for a mortgage remains difficult for many and the use of adjustable-rate and ‘jumbo’ home purchase loans remains far below the historical norm. Remember, the temporary conforming loan limit increase expires in September, so if it’s hard now, wait until October 1st when you try and get that 30 year mortgage on $450,000.00 at 4.5% – you better add at least a full point if not two. Rates will sky rocket as the risk is now on the investor not the Government (tax payers).
The median price for a home here in Southern California home was $285,000 last month, up 1.8% from $280,000 in May but down 5% from $300,000 in June 2010. The median price was the highest it has been since December, when the median was $290,000. My personal opinion is that we will see at least another 5-8% drop in overall values before the year is over. There is by far too much skepticism in the market, to great of a fear that we will see more market deterioration. Buyers are concerned as they should be. Sellers are stuck, especially in the median areas that are saturated with short sales and foreclosures. If selling is something you are considering, especially if you are facing a short sale, you need to call me today. There are numerous ways out that can help save you money and stop any further impact to credit.