Buyers: Sellers are now wise to the fact that if they want to sell they will need to adjust their price in this shifting market. Homes that have been on the market for an extended period of time are just waiting for a reasonable offer. View all of these homes for sale online at SanDiegobythesea.com If you know anyone who is thinking about buying, please let me know how I may be of assistance.
Sellers: Contrary to what the media is broadcasting; there are still plenty of buyers searching for property. Count on needing eye-catching marketing to get them walking through your front door and strategic negotiating to finalize the sale of your property. If you know anyone who is thinking about selling, please let me know how I may be of assistance. Homes do not sell by happenstance. A prudent and thoughtful marketing strategy can make your property stand out from the rest.
San Diego County Property Sales Continued to Fall in 2007
We asked the question last year, after three years of falling sales, whether or not 2006 would prove to be the bottom of the market. And, the answer is in: NO! Of course, this begs the question of whether or not 2007 will prove to be the bottom of the market.
None of the talking heads could have predicted the credit crunch that quite effectively reduced demand. I would say decimated demand, but, in realty, decimated means lopping off 10%. No, the credit crunch did more than that in the last half of 2007. Plus, we still have a plethora of adjustable rate mortgages rising upwards waiting in the wings.
Yet, there are still signs that this year may see the market finally hit bottom: Bank of America is buying Countrywide, which will provide stability to the mortgage market, and many Sovereign Funds are injecting liquidity into the mortgage market, albeit not through any altruism, but because they’re buying assets for pennies on the dollar. Plus, the Fed will probably continue to lower interest rates, which will provide relief for consumer debt. Remember though, the Fed’s actions have little if no effect on fixed mortgage rates.
On the the numbers. Sales of single-family, re-sale homes in 2007 were down for the fourth year in a row in San Diego County: falling 16.5%, a relief after the 23.4% drop in 2006. Condo sales were down 12.6%, compared to a drop of 26.1% in 2006. Another thing to remember, the lofty sales figures for 2002, 2003 and 2004, when sales peaked, where due to investor activity, not the simple supply and demand of people who wanted to buy homes to live in.
The median price for re-sale homes dropped 1.7%, the first drop since we’ve been keeping records: 1998. Of note, the average price rose 1.4%. This is a tale of two markets. The entry level market has been creamed by the credit crunch because buyers in this segment of the market depended upon no-doc and 100% financing loans to buy homes. These loans are gone, completely.
The $1,000,000 plus market has, therefore, become a larger percentage of total sales, which has had the effect of keeping statistical prices higher than reality.
Of course, statistical prices have absolutely no bearing on what your home is worth or what you can buy a home for. That depends entirely upon the agreement you make with the buyer or seller.
- 2008 rereport.com
None of the talking heads could have predicted the credit crunch that quite effectively reduced demand. I would say decimated demand, but, in realty, decimated means lopping off 10%. No, the credit crunch did more than that in the last half of 2007. Plus, we still have a plethora of adjustable rate mortgages rising upwards waiting in the wings.
Yet, there are still signs that this year may see the market finally hit bottom: Bank of America is buying Countrywide, which will provide stability to the mortgage market, and many Sovereign Funds are injecting liquidity into the mortgage market, albeit not through any altruism, but because they’re buying assets for pennies on the dollar. Plus, the Fed will probably continue to lower interest rates, which will provide relief for consumer debt. Remember though, the Fed’s actions have little if no effect on fixed mortgage rates.
On the the numbers. Sales of single-family, re-sale homes in 2007 were down for the fourth year in a row in San Diego County: falling 16.5%, a relief after the 23.4% drop in 2006. Condo sales were down 12.6%, compared to a drop of 26.1% in 2006. Another thing to remember, the lofty sales figures for 2002, 2003 and 2004, when sales peaked, where due to investor activity, not the simple supply and demand of people who wanted to buy homes to live in.
The median price for re-sale homes dropped 1.7%, the first drop since we’ve been keeping records: 1998. Of note, the average price rose 1.4%. This is a tale of two markets. The entry level market has been creamed by the credit crunch because buyers in this segment of the market depended upon no-doc and 100% financing loans to buy homes. These loans are gone, completely.
The $1,000,000 plus market has, therefore, become a larger percentage of total sales, which has had the effect of keeping statistical prices higher than reality.
Of course, statistical prices have absolutely no bearing on what your home is worth or what you can buy a home for. That depends entirely upon the agreement you make with the buyer or seller.
- 2008 rereport.com
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