End of Year Sales Info in San Diego

Home prices rose almost 2% since October but are down more than 4% from a year ago.  While prices are remaining somewhat stable the number of sales continues to rise, which is rare for November.

Cash purchases are still near record high w/ over 28% of all transactions, down a bit from earlier this year, but still far above average [15%].

Sales under $400k rose more than 6% from 2010 while sales over $500k dropped more than 15%, heavily influenced by difficult with loans and buyers' losses in the stock market.

It is easy to see that the real estate market is completely saturated with low-end investment buyers; buyers primarily looking for a more secure investment than .01% interest in the bank or the roller coaster stock market.   There are numerous homes available for under $150k and most are selling with multiple offers with a majority of cash offers.

In the ultra-low-end market (under $150k) bank-owned homes are being under-priced to create a heavy bidding war-- a frustrating occurrence frequently seen back in 2009.  I cannot reason why a listing agent would prefer to have 20+ low-ball offers on a property when they could list the home at market value and receive offers from realistic buyers.  Though it is obvious, sales under $100k have definitely bounced back and are appreciating.  Buyers making offers in line with market value (based on comps) are being outbid by other cash buyers who are willing to risk a few thousand dollars in order to gain an 8-10% return on investment.

Why Should You Use a Real Estate Agent?

So often I hear from potential buyers that they prefer to not use an agent because they can do "everything" themselves online. With all the real estate websites available today this is true, to some degree.

Of everything posted on the internet, most is not carefully monitored nor does it have a 'code of ethics'. People always warn of social media site users of protecting their identities and whatnot, but the same goes for real estate websites.

I have many tech-savvyy clients who enjoy searching various websites to make sure I am sending them everything currently available. I encourage them to be active in their search for a home, and the "do-it-yourself" action makes them feel more involved.

Often my clients email me several listings to which I graciously cross-check with our MLS and look to determine why I did not send it to them. 100% of the time there is a valid reason the listing did not come from me. Below are the primary reasons.

1. The house is sold or in escrow. Maybe it sold in 1995, which is why it is listed $174,000 below market value. If it is in escrow that means it is under contract with a buyer. Many websites are not updated and get their info from various sources.

2. The house was never officially for sale-- not sure where websites gather this information, maybe it was for rent, maybe it was seized by the bank, maybe it is an agent trying to get business.

I just had one of my clients find a house on a "for sale by owner" website. It was listed $147,000 below what it was listed 1 month prior by a legitimate agent. I cross-checked the tax records which had a different name as owner. To get the real-deal, I tried calling the "seller", of course, the number was disconnected, so I emailed him. He responded and said he was overseas and didn't want to pay the "20%" fees associated with having an agent [fyi- it costs about 7% in fees to sell your home]. He gave me his overseas number and an 800-number for his realtor here, a notable agent. Long story short, I called the agent directly from their # in our MLS, they had no knowledge of this and confirmed he was not the seller.

Attention buyers: You pay NOTHING for an agent's services, we are paid from the seller's proceeds. House shopping on your own without an agent isn't wise and can be a huge waste of time. Not to mention when you find your dream home will you know what to do to protect your investment? I'm here if you need me! 619-990-4192

San Diego Real Estate Market: Up, down, up, down and UP again

Per usual, San Diego experienced a severly slow holiday period and January felt the hangover, but February was a recovery period and foreshadows a better Spring. Just like Spring 2010 when prices gained the most in the past 3 years [heavily fueled by tax-credit incentives] this Spring's outlook looks strong.

Interest rates are still very low but are slowly creeping up and FHA has tacked-on higher insurance premiums, nonetheless NOW is the time to buy.