Wednesday, March 6, 2013

Getting your offer accepted.

This is undoubtedly a sellers market. Sellers are reviewing multiple offers, and buyers are frustrated with the "unfortunately your offer was not accepted" emails received. This is where relationships, and outside-the-box thinking, can help turn the emails into "Congratulations!" 

When representing a buyer in this climate, I see benefit and success in the actions I take with my buyers. Beginning with initial contact with listing agents, to a hand shake after a showing. Obviously price is an important factor, but the offers that a listing agent can put a name with a face, also matters.

Last week we had a accepted offer, with 4 other identical offers on that property. This week we also had an accepted offer with 1 offer slightly higher. The fact that the listing agent and I were in constant communication, and my due diligence, paid off.  

 


Below is a snap shot of the last 6 months of inventory and price trends. The trend is continuing and inventory is still shrinking. 

San Diego Asking Price and Inventory History

DateSingle Family & Condo
Inventory		25th Percentile
Asking Price		Median
Asking Price		75th Percentile
Asking Price
March 20137,021$270,000$419,900$789,000
February 20137,056$263,725$408,125$756,750
January 20137,272$254,750$394,500$714,225
December 20127,929$249,560$383,175$697,280
November 20128,963$249,000$382,500$691,250
October 20129,561$249,000$385,400$703,580
September 20129,951$249,450$388,875$698,725
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Tuesday, January 29, 2013

Some Changes in San Diego Real Estate

       More and more recent conversations with real estate investors and past clients, has left a unwary engraving in my speculations on the current and future real estate market in San Diego.
More real estate investors today that I have spoken to are using phrases like " we used to buy at X and now we are forced to buy at Y ". They are not talking about decades or back during the bubble, buy they are talking about the last year or two. Where as X was $200,000 and now Y is $250,000, for example.  Or where a past client if given an evaluation of a purchase that was made last year, and says " Wow, really ". This seems to be more common.

Prices have risen in San Diego over 10% in the last 12 months.
Take a look at the chart below. This is a snap shot of the San Diego County MLS. This is for December 2011, Compared to December 2012.

Year-on-year Statistics
 Dec-12Dec-11% Chg
# Sold3,1393,0343.5%
# For Sale (Last Day of Month)7,57015,246-50.3%
Median Price (Sold)$362,000$301,25020.2%
Median Price (For Sale)$370,000$329,90012.2%
Price per Sq Ft$255$22214.9%
Sold Price to Original Price95%90%4.8%
Average DOM79102-22.5%
Months Supply2.45.0-52.0%

The important notes to take is that there was 1/2 the inventory of homes available last month, than the year before in the same month.
You may notice that sold price to list price increased by about 5%, however the list price of homes also increased over 10%.

The Simple Law of Supply and Demand.



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Wednesday, January 9, 2013

December Finally 2012 - Start of a New Year

As you can see below, the inventory in San Diego is still declining. 
As we begin 2013 I believe inventory will continue to decline, yet hopefully stabilize and even increase towards the second half of the second quarter. I don't see home prices acting any differently, as they have increased over the last year, and should continue to increase county wide for most of 2013.


                                     January 07, 2013       Month/Month        Year/Year
  Median Asking Price           $389,000                 +1.0%         +11.1%
  Home Listings/Inventory         7,241                    -11.8%        -40.0%



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Tuesday, November 20, 2012

Is now the best time to list a home for sale in San Diego?

Is now the best time to list a home for sale in San Diego? I think YES.
This morning, only 3,433 properties are available as active in San Diego county. If you think this number is good, sufficient, or even a lot, you are mistaken. According to the Census Bureau, there are close to 600,000 detached homes in San Diego county. This means that just over 0.5% of the homes in San Diego  county are for sale.
Based on demand, months of inventory, and month over month price increases, we should be seeing a greater price increase than what the market is currently showing. We also can handle over double the current inventory that currently exists, given the current interest rates, and low prices.

What this mean to buyers? It is tough out there, this is definitely a sellers market, and multiple offers are being reported on properties within a week. If you are on the hunt, then you must act fast, be aggressive, and have your Realtor contacting every listing agent for as much info as you can get before being disappointed by the overwhelming offers they may have.

What this means to sellers, or owners considering to sell? We are seeing properties sell in less time, and for a higher price than sometimes even anticipated. Buyers are becoming understanding that you will most likely have more than one offer, and that their offer needs to be the best ( Terms, price, etc. ). Banks are more open to dealing with short sales, and approval times for some institutions have dropped to 2 months or less in some instances. January is coming near, and I think 2013 will show an increase of inventory, and possible begin to see leveling prices at the end of the year (2013).

Find out what your home is worth, and what you can expect today. Contact me.



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Tuesday, November 6, 2012

San Diego Market Stats - End of October

Below are a few graphs courtesy of SDAR. The first which I think may be most important when looking at 2013 is the Active, Contingent & Pending Listings. As you can see, the inventory of residential properties available in San Diego is declining, which should keep the fire burning in San Diego for at least the first quarter of 2013. I expect prices to still creep up in January as result. 

    The Drop in September's Sales may have been due to August's spike. Many lenders, Escrow, and Realtors more than likely trying to get transactions closed before months end. Then re-acclimating in October, to show similar results as July.

The median sales price has been on the incline as inventory has been on the decline. Simple supply and demand.



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Tuesday, October 9, 2012

September snap shot for San Diego


It appears I was correct in my last entry. Septembers numbers are lower for properties sold.
I think the most important stat below is the "TOTAL SOLD LISTINGS Comparing September 2012 to August 2012". Septembers Closed properties is over 16% less than Augusts numbers. 
Even though we are entering the lull of the year as the holiday season ramps up. Interest rates are still dropping, and I suspect things will pick back up in October, and then again when we enter the new year. 


MEDIAN SALES PRICE Comparing September 2012 to August 2012 (previous month)

 Single-Family:  3.3% INCREASE
September 2012 = $405,000 August 2012 = $392,250

 Condos/Townhomes = UNCHANGED
September 2012 = $240,000 August 2012 = $240,000

MEDIAN SALES PRICE Comparing September 2012 to September 2011 (previous year)

 Single-Family:  12.5% INCREASE
September 2012 = $405,000 September 2011 = $360,000Page 2 of 2

 Condos/Townhomes:  14.3% INCREASE
September 2012 = $240,000 September 2011 = $210,000

TOTAL SOLD LISTINGS Comparing September 2012 to August 2012 (previous month)

 Single-Family: 16.1% DECREASE
September 2012 = 1,888 August 2012 = 2,250

 Condos/Townhomes: 18.5% DECREASE
September 2012 = 829 August 2012 = 1,017

TOTAL SOLD LISTINGS Comparing September 2012 to September 2011 (previous year)

 Single-family: 9.6% INCREASE
September 2012 = 1,888 September 2011 = 1,722

 Condos/Townhomes: 4.4% INCREASE
September 2012 = 829 September 2011 = 794


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Tuesday, October 2, 2012

MLS Searches this morning.

This month again, we are slipping lower in inventory of both single family and attached real estate for sale in San Diego.
I ran a quick search this morning for only Single family homes in San Diego that are listed as Active. The results were 3,825 detached homes available this morning. What may be even more surprising is that pending properties, currently in escrow, are showing a total of 3,347. Not far from the amount that are active. As for short sales waiting approval with accepted offer, 2,588 existed.
Sold detached homes between Sept. 1 and Sept. 30th are shown as 1,785 total. ( which appears to be down from August)



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