Wednesday, July 4, 2012



Notice of Defaults, and Trustee sale properties going to sale are both down once again. The county is receiving nearly 9% more canceled sales than that of the previous month. As well as nearly 6% decrease of properties sold to third parties from May to June. This is also backed by a drop in Trustee deeds recorded. 


I look at this data, combined with the " shadow inventory " the banks are holding, and wonder what the next step will be in the San Diego real estate market.

Inventory numbers are at a staggering low, turning the tables more so for sellers than for buyers. Where is a property in Serra Mesa posted sold at 350k and similar property is now listed for 380k. I am not saying the market has jumped 9% in the last six months, but the amount of buyers in the market with interest rates still dipping lower. The lack of inventory throughout the county, and the lack of properties purchased by investors at trustee sale, create a wary scenario.

The financial institutions, I believe, will need to begin releasing more residential properties by force of hand. However, with this being an election year I do not see that occurring until January of 2013. I also think that they see the increase in the markets demand, and once they begin listing more homes for sale, those prices will be considerably higher.  
  
Cell: 619-788-8354 
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