San Diego Foreclosures Fading From Market – For Now
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Published: Monday, May 11, 2009
San Diego foreclosures are quickly disappearing from the listings, shrinking inventory and creating a seller's market. A year ago there were over 19,000 listings, while today there are just over 13,000, and over 2,000 of them are actually short sales waiting on lender approval. This means that there are really only about 11,000 listings in the county currently, the lowest spring numbers in years.
As a result, sellers are seeing multiple offers on each transaction and prices are inching upward at a steady rate. While nowhere near the market high of April, 2007, median home prices have climbed 10% in the past month, particularly among smaller homes priced near $250,000. Thanks in part to continued low interest rates and federal homeowner tax rebates up to $8,000 per deal, sales in the entry level homebuyer range have skyrocketed, further eating away at the inventory of San Diego bank homes.
High End San Diego Bank Homes Sit
The buying frenzy hasn't reached higher end San Diego bank homes yet, however. April saw slightly more than 2,500 sales completed, with a whopping 84% of them under $500,000. Typically the higher and lower end prices are split 50/50 in terms of sales. Not so in the current market. Homes listed above $500,000, including luxury La Jolla foreclosures and Carlsbad bank homes, currently have a 9 month inventory of homes, as compared to just 2 months for those priced under $500,000. This could further drive prices down in the exclusive neighborhoods, creating foreclosures bargains among the move-up or executive buyers.
Future Foreclosures on the Horizon
Although the current inventory is causing a minor blip in the market, buyers looking for affordable San Diego County foreclosures are still in luck. Part of the inventory decline has been a result of banks waiting for final word on the new federal stimulus funds and how they will affect their San Diego REO properties. The banks have been holding houses back but market watchers suspect that is about to change.
Based on the number of foreclosures in the past six months, compared to the number of sales, there are thousands of quality San Diego foreclosures sitting in the lenders' portfolios. When those houses hit the market, which should be any day now, buyers will have an easier time having their offers accepted and have a much larger selection to choose from.
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About this Page: San Diego foreclosures are disappearing from the listings, shrinking inventory and creating a seller’s market. Richard Elias offers insight into the current San Diego foreclosures market.
San Diego Foreclosures Fading From Market – For Now
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