Summer Real Estate Stats

    Summer is beginning to wrap-up, though the beautiful weather is showing no sign of change, forecasted to be in the high 70s for the next few weeks. So did real estate rally and challenge all the doom and gloom of our economic purgatory? Not really.


June prices and quantities were up more than expected (yay!), more than any month since June 2010 when sales boomed from the stimulus tax credit, but July 2011 sales dropped more than predicted. Statistically, since 1988, home sales typically drop 4-6% from June to July, but this year, they were down over 11%.


Buyers/investors and everyone else had been in such a panic during [and following] the debt ceiling crisis all "maybe" buyers took two steps back to survey what would happen. Unfortunately for them, if their money was in the stock market while they mulled over buying property they are probably now even less likely or unable to buy a home or investment property.


Bank-owned (REO/foreclosure) home sales are down 2% from last July, now accounting for 32.% of all sales in SoCal which is far lower than 56.7% back in Feb. 2009.


I will still stick w/ my theory, the bottom of the market has come and gone (late 2009). No, the market hasn't gotten much better but it is stabilizing, though the Fall and Winter will be significant indicators.


Short sales are still just common as they have been the past 3 years but it appears that banks are becoming more pro-active in closing short sale transactions. But with every step forward there are always a few steps back, like always, there are many sellers who think they deserve a short sale just because their home is no longer worth what they owe and/or they took out too many loans to buy plasma tvs and Escalades.


Attn: Buyers (especially first-timers): Make sure you're working with an agent who knows how to navigate short sales, foreclosures and homepath properties. Just because the property is listed for sale does not mean it can actually sell as a short sale or for the price listed. Know what you are getting yourself into re: time, money and all the other hurdles that accompany a short sale escrow.


I have dealt with numerous short sales and have taken further education to stay up-to-date w/ the process. Do I recommend short sales? Rarely, but I know the process to insure the property is at least a realistic option so buyers are not wasting months of their time.

Questions?  Call or email me - I won't pressure you into buying or selling, but I can help you weigh your options and determine what is best for you.  I don't BS and I won't waste your time if you don't waste mine.

(619) 224-7249 office