16. June 2012 10:34
If you are a buyer in San Diego County right now, your options are limited. Competition is very tough among buyers for well priced homes in great condition in the sought after neighborhoods. Summer brings out the largest buyer pool of the year, and we really are not seeing the needed inventory to satisfy demand. Is it a sellers market? Yes, in certain neighborhoods, and in certain price points.
Twelve months ago in San Diego, if a buyer was offering all cash, their price was a discount from the list price. Today, all cash is typically at list price or above because buyers do not want to miss the property of their dreams. REALTOR.com ran a story on June 13 with the headline: “INVENTORY OF FOR-SALE HOMES FALLS 20% FROM YEAR AGO”. Keep in mind this figure is for real estate from sea to shining sea. Locally, 8 of the top 12 markets with the largest inventory drops are in California. Phoenix, Seattle, Atlanta and Tampa are the other areas outside of CA. Decreases in these cities as follows: Oakland 56.6%, Fresno 48.87%, Bakersfield 48.59%, San Jose 40.80%, Stockton 39.25%, San Francisco 38.90%, Riverside 37.43% and Sacramento 35.92%.
If you’ve ever been to the central valley of California, “the nations breadbasket”, then you’ll understand the sheer audacity of those areas (Fresno, Bakersfield, Stockton) to actually be ahead of the curve of other U.S. metro areas in housing. There are fewer distress sales in California today than 12 months ago, because the state Attorney General did not halt foreclosures, unlike the majority of other states. As a result, the distress was purged continuously and no inventory backlog was created. Supply and demand dictate that prices increase, albeit in small increments, as inventory thins. If you are an action ready buyer, prepare to pounce on the property you want.
For more information on San Diego County real estate, contact me.