The local inventory in both detached and attached units fell, the number of new escrows increased significantly. This reflects investors, many paying all cash, taking advantage of the low prices and buyers locking in the still low interest rates. The number of new foreclosures hitting the market has apparently not had a negative effect on sales or pricing . I would expect the sales activity to improve further during the spring and summer months. It is not unusual for investors to lead the market out of a bottom with individual buyers to wait until prices have increased 10% or more, along with interest rates. My personal opinion is that, with the general economy starting to show signs of improvement, real estate will follow. That is not to say there won't be any bumps in the road, but generally speaking things are looking better than they have in a long time. The "flood" of new bank owned properties has not materialized yet because many banks have finally learned that they are their own worst competition and that if they move their inventory to the market slowly they will make more in the end (this is one of the few things they have done correctly).
If you are considering doing a short sale on your own property I would suggest you do it sooner rather than later as some banks have been foreclosing in spite of having a higher offer in hand. Don't ask me why, there's no good reason, but we've seen it several times over the last month. Once the Notice of Trustee's Sale is filed it is becoming very difficult to successfully complete a short sale, so get started before that happens!
Have a great March and let me know what questions you have. I'd love to discuss the value of your San Diego home or start a focused automatic home search for you or refer you to an excellent agent in your area if you do not currently live here.
R. Ungar, Associate Broker – Keller Williams Realty
