Point Loma Real Estate News (Dec 2008)

First, we’d like to wish you a wonderful holiday season & a super 2009! I can’t believe that 2009 is almost here!
Secondly, let’s talk about what the local real estate market is doing: NOT MUCH is the best way to put it. We are finding that most potential buyers and sellers are waiting to see what happens once Obama is inaugurated. Is he really going to increase personal and property taxes? Raise the capital gains tax rate? Or is he going to wait until the economy gets better? What will he do to make it better? Aside from waiting for the presidential switch, many buyers and sellers are deciding to wait till prices hit bottom or go back up, which is hard to speculate or calculate when that time might be, or if it is already beginning.

When looking at sales across all of San Diego, prices are dropping but more properties are selling. That’s pretty much the result of the numerous foreclosures. But Point Loma and Ocean Beach are different! Yes, prices have dropped and the real estate market here has slowed, but very minimally when compared to Chula Vista, Mira Mesa, Temecula, etc.
In a nutshell, things are pretty SLOW right now BUT, look at the stats for October on the reverse side: PROPERTIES ARE SELLING!
OCEAN BEACH had 8 detached home sales in Oct 2008 vs 12 sales in Oct 2007 & prices went UP 0.2%; 5 condo sales in Oct 2008 vs 8 sales in Oct 2007 & prices went down 15.8%.
POINT LOMA had 14 detached home sales in Oct 2008 vs 10 sales in Oct 2007 & prices went down 12.8%; 4 condo sales in 2008 vs 3 condo sales in 2007 with prices up 7.9%.

It is important to remember when looking at these numbers that they are highly influenced by the # of sales and the price of properties. Especially here in Point Loma and Ocean Beach where we have houses priced from $350K to $5Mil and condos ranging from $135,000 to $1.3Mil so this percentage is dramatically affected if in one month 5 ‘expensive’ homes sell and the next month 5 ‘cheaper’ homes sell.
You read different articles and can draw very different conclusions: One says that things won’t change for years, others say that it’ll get much better later next year…One UT article Sunday November 30th comes to the conclusion that “WE ARE AT THE BOTTOM. THE QUESTION IS HOW LONG (WE WILL STAY THERE).”
The most positive side of this current market is that there are fewer and fewer properties for sale & fewer and fewer foreclosures. Several lenders have actually stopped foreclosures over the holidays. The other thing that makes me feel that the market will change for the better sooner rather than later is that the very expensive homes are now not selling & those sellers have to reduce their prices. That’s pretty much been an indication in past down-turns that the market will start to turn around. Let’s hope so!
WONDER WHAT YOUR PROPERTY IS WORTH? Give us a call, we’re happy to give you a FREE market evaluation! We’re with the #1 real estate firm, COLDWELL BANKER, right here on the Point (CB was just ranked #1 by the WALL STREET JOURNAL). We’ll do the best job for you, guaranteed! If you have any questions or would like any additional information please call us, we are here to help with all your real estate needs!