How is the Real Estate Market Fairing?

People always ask me how the real estate market is doing. It’s not easy to give a quick answer, so I usually say something like, “we have had some tough times but prices seems to have stabilized in North San Diego, and have even slightly increased in some areas.” The fact of the matter is that there are still lots of buyers out there, they are looking for the right home; there are some great buys out there waiting, if you are ready for negotiating and possibly a long escrow (think short sales and REO properties, or different types of loans). I couldn’t believe how many people called me the last few days of escrow on my last listing, wanting to get in to write back-up offers.

In my efforts to remain upbeat but present an accurate version of the state of the market, here is what I have, in a nutshell:

1. May sales were up in San Diego county, June sales dropped a bit, but prices continued to rise. San Diego was the only metro area in the country with 13 months of consecutive home price increases (placing second only to San Francisco).

2. The median price of a home in California increased 13.6% in June.

3. The number of foreclosed homes nationwide has fallen for the third consecutive month (but the numbers are still high historically speaking)

4. Lenders are still being very tough on potential buyers, so be prepared for an extended escrow (a few days to weeks), even if you are golden on paper.

5. There are still some great deals out there, especially with short sale properties, if you are not in a hurry.

6. There is still lower-than-usual inventory in North San Diego right now (although it is technically rising slightly), with many properties having been on the market a while or having fallen out of escrow. I see this as an opportunity…in fact I have personally had my eye on a property that has fallen out of escrow and reduced a few times.

So, what does all this mean? I really try not to read too much into statistics, as often they do not reflect my specific market. I also don’t place too much on analysts’ takes on the market as, again, they often focus on the big picture and not my little niche in the market. Not to mention you can make yourself crazy trying to crunch all the numbers and decipher all the opinions. I usually stick to my instincts, but being that I have a foot in the market so to speak, those instincts are buffered by what I see on a daily basis in my own market. So, I will end with the cliche that many agents spew, however note that this is based on what I see as truths: numbers, buyers out in the market, inventory (or lack thereof), price reductions in my own area, and of course, the good old instincts: NOW IS A GOOD TIME TO BUY REAL ESTATE IN SAN DIEGO COUNTY. You have to form your own opinion, but there is mine in case you wondered.