Buyers, now that we are heading into the summer months inventory will continue to increase. So this is the best time to start looking for your next property. Be aware that higher inventory levels and this time of the year commonly results in many other buyers coming into the market. Homes priced competitively are still going quickly. So use the Home Finder on my website, or tell your friend that’s thinking about buying that they can view ALL properties for sale in their neighborhood at www.SanDiegoByTheSea.com
Sellers, for the next four months you shouldn’t be surprised to see more property for sale on the market. Competition will become even more fierce and it’s imperative that you seek professional marketing that advertises your property aggressively. If you know anyone that is thinking about selling, please let me know. I will assist them so their property stands out from the crowd and sells, instead of blending in with all the rest.
Home sales hint at longer slump ahead
- Los Angeles Times May 16, 2007
Southern California home sales plunged to a 12-year low in April, suggesting that the region’s real estate slump is far from over.
Prices were up overall, rising 6.1% from a year earlier to a median of $505,000, according to data released Tuesday. But that increase was largely driven by an uptick in Los Angeles County, masking declines in Riverside, San Diego and Ventura counties.
Moreover, sales fell throughout the six Southland counties as inventories rose — and that could push values lower, analysts said.
“Demand is not there and supply is greater; prices are bound to go down,” said Esmael Adibi, an economist at Chapman University in Orange. “No question that the bottom of the market hasn’t hit yet.”
Southern California home sales sank to 19,269 in April, a 28.9% drop from the same month last year and a 12% fall from March. The steepest decline was in the Inland Empire. Sales volume dived 45.1% in Riverside County and 46.7% in San Bernardino County.
Sales are declining at a slower rate in neighborhoods where the median price is $600,000 and higher, according to DataQuick Information Systems, which released Tuesday’s report.
But in areas such as the Inland Empire, which offers affordable housing and caters to first-time buyers, sales are in a free fall. That’s partly because of tougher mortgage loan standards brought on by rising defaults, and that is shrinking the pool of buyers.
The sales decline also reflects the ebb and flow of the real estate market, said John Karevoll, DataQuick’s chief analyst.
The sales decline, however, didn’t weigh down prices significantly. In April, the median price in Riverside County fell 1% to $409,000. San Bernardino’s median edged up 2.8%. Still, that’s a big change from a year earlier, when prices were up 9.4% in Riverside and 18.4% in San Bernardino.
In San Diego County, the median price slipped 3% to $490,000 for the slowest rate of decline since August. Sales fell 13.5%.
The trend mirrors what’s happening across the country. The National Assn. of Realtors said Tuesday that sales of existing homes fell 6.6% in the first quarter, and that the median price slipped 1.8% to $212,300.
Karevoll said that if sales continued to fall, “undoubtedly there would be a drag on prices.”
“But the question is, is it going to last that long? I don’t think it will,” Karevoll said, citing a healthy local economy and still-low interest rates.
Real estate agent Ernie Boehr seconds that opinion. This week, he fielded 24 offers for an Arcadia home, which he described as a fixer. The seller accepted an offer that was about $100,000 above the $699,000 asking price.
“Some properties don’t get any activity and some get tremendous activity,” Boehr said. “If it’s priced right, it goes.”
Southern California home sales plunged to a 12-year low in April, suggesting that the region’s real estate slump is far from over.
Prices were up overall, rising 6.1% from a year earlier to a median of $505,000, according to data released Tuesday. But that increase was largely driven by an uptick in Los Angeles County, masking declines in Riverside, San Diego and Ventura counties.
Moreover, sales fell throughout the six Southland counties as inventories rose — and that could push values lower, analysts said.
“Demand is not there and supply is greater; prices are bound to go down,” said Esmael Adibi, an economist at Chapman University in Orange. “No question that the bottom of the market hasn’t hit yet.”
Southern California home sales sank to 19,269 in April, a 28.9% drop from the same month last year and a 12% fall from March. The steepest decline was in the Inland Empire. Sales volume dived 45.1% in Riverside County and 46.7% in San Bernardino County.
Sales are declining at a slower rate in neighborhoods where the median price is $600,000 and higher, according to DataQuick Information Systems, which released Tuesday’s report.
But in areas such as the Inland Empire, which offers affordable housing and caters to first-time buyers, sales are in a free fall. That’s partly because of tougher mortgage loan standards brought on by rising defaults, and that is shrinking the pool of buyers.
The sales decline also reflects the ebb and flow of the real estate market, said John Karevoll, DataQuick’s chief analyst.
The sales decline, however, didn’t weigh down prices significantly. In April, the median price in Riverside County fell 1% to $409,000. San Bernardino’s median edged up 2.8%. Still, that’s a big change from a year earlier, when prices were up 9.4% in Riverside and 18.4% in San Bernardino.
In San Diego County, the median price slipped 3% to $490,000 for the slowest rate of decline since August. Sales fell 13.5%.
The trend mirrors what’s happening across the country. The National Assn. of Realtors said Tuesday that sales of existing homes fell 6.6% in the first quarter, and that the median price slipped 1.8% to $212,300.
Karevoll said that if sales continued to fall, “undoubtedly there would be a drag on prices.”
“But the question is, is it going to last that long? I don’t think it will,” Karevoll said, citing a healthy local economy and still-low interest rates.
Real estate agent Ernie Boehr seconds that opinion. This week, he fielded 24 offers for an Arcadia home, which he described as a fixer. The seller accepted an offer that was about $100,000 above the $699,000 asking price.
“Some properties don’t get any activity and some get tremendous activity,” Boehr said. “If it’s priced right, it goes.”
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