San Diego Cal Homes: February 2011

Saturday, February 19, 2011

Recent Home Values in San Diego

Without much discussion, I’ll tell you that the Real Estate market is dominated by conditions for which we have no direct control. The market is forecasted for a slow recovery, but for now, consider it a potential buyer’s paradise. Just keep in mind that, in spite of the market conditions, we all have choices as to whether, and how to buy and sell homes.

Simply stated … the market as it is, presents opportunities for buyers, and challenges for sellers. A few of my thoughts for your consideration appear below, followed by a few statistics of interest relevant to the San Diego market as a whole, and also for a few surrounding neighborhoods.

Opportunities for Buyers :

1. Market values are 30% less than at the peak in year 2005 / 2006.

2. The supply of homes is adequate

3. The inventory selection is good-to-excellent, with premiere properties available, and many being sold at equity sale – my advice – stay away from short sales or foreclosures

4. Interest rates are still very favorable, and more money in all categories is becoming available

5. Escrows are typically closed from between 20 to 30 days from opening

6. Upgrading in a down market sometimes makes great sense

7. Great investment prospect with potential for future gains

Challenges for Sellers:

1. Listing your home at market value to cause it to sell

2. Updating and maintaining the appeal and functionality of your home in preparation for sale

3. For Sale by Owner (FSBO) – not a good idea – hire a competent broker

4. Websites such as Zillow and Truila can be deceiving and often suggest purchase prices to on-line seekers at 5+% below market value

5. Neighborhood foreclosures and short sales that drive area sales prices downward

6. Reducing you listing agent’s commission rate – not a good idea

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Full-Year 2010 (Units except for $’s)

Beginning Inventory 15,147

New listings 56,557

Sold (31,522)

Expired/Cancelled (26,851)

Adjustment 1,244

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Ending Inventory 14,575

Inv. Months-on-Hand 5.6

Average Days on Market 76

Avg Listing Price $ 433,077

Avg Selling Price $ 418,086

% of Price Sustainability 96.5%

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Market Value Ranges

Neighborhood Average $ / Square Ft

North Coastal

Oceanside = $ 185 to $ 205

Cardiff = $ 430 to $ 476

Carlsbad = $ 246 to $ 272

Encinitas = $ 319 to $ 353

South Coastal

Solana Beach = $ 444 to $ 490

Del Mar = $ 566 to $ 626

La Jolla = $ 530 to $ 586

Pacific Beach = $ 427 to $ 471

North Coastal Perimeter

San Marcos = $ 185 to $ 205

Vista = $ 174 to $ 192

South Coastal Perimeter

Carmel Valley = $ 316 to $ 350

Rancho Santa Fe = $ 400 to $ 442

Sorrento Valley = $ 271 to $ 299

UTC = $ 297 to $ 329

Inland

Escondido = $ 169 to $ 187

Poway = $ 252 to $ 278

Rancho Bernardo = $ 241 to $ 267

Rancho Pena = $ 244 to $ 270

Scripps = $ 243 to $ 269

Our goal is to help and guide people to buy and sell San Diego Homes: Contact us soon - and let us apply for the job of being your Real Estate agent.

Charles M. Schevker (CPA)
DRE # 01875556
Broker Associate
Prudential California Realty
1299 Prospect St.
La Jolla, CA. 92037

Google Keyword = Homes in La Jolla CA

Main Office: (858) 357-9814

Sattelite Office: (858) 459-0501 ext. 319
Home Office # 1: (858) 750-2578

Home Office # 2: (858) 412-6082

Mobile: (858) 449-8250

Cschevker@san.rr.com

http://www.San-Diego-Cal-Homes.com

http://www.linkedin.com/in/charlesschevker

http://www.sandiegojewishrealtor.com/

Monday, February 14, 2011

Real Estate – Fantasyland ? Reality ? Where is the answer?

Buyers and sellers call us all of the time. They want, or expect, that we can lead them to the secret hiding place for all of the best housing deals. Sellers for example, call and expect that we have the magic wand to sell their houses for prices well above market. Buyers, on the other hand, call us and want to know if we have a special inventory of low-priced, high value homes that we are reserving just for them. How interesting! It is amusing and yet challenging all at the same time. Let’s face it - the real estate market is just plain
whacky!

When sellers call us, we realize that they do not understand that, because of the multiple methods we employ, then attempting to estimate the best market value to sell their home, takes several hours of research and calculations. Usually, the seller calls with great anticipation in their voice, then nervously begins to articulate every cent they spent to upgrade or maintain their home – and then, afterwards, casually asks us … so what do you think is the best price I can get for my house? Most sellers have no clue as to what factors drive market pricing – and that’s ok, because we do, and we can help them.

Homeowners are driven by the emotional attachment associated with the purchase price they paid, as well as the loving care and attention given to their home - and not logic. Logic is rarely an element in home sales transactions. Here is what we encounter often. Many people who purchased their current homes in say 2005 to 2006, just at the point when the market peaked, have an expectation that they should be able to sell their homes for at the least the same price they paid. Well… we empathize with this – we really, really do. However, like it or not, the market has declined by 30% over the last few years, and therefore the likelihood of selling your home for that inflated price is… well… zero. This tells us that some sellers are either disillusioned that they can find the one uninformed buyer who is willing to overpay for their home, or maybe they are simply in denial that they will have to forfeit equity in exchange for moving onward with their goals and desires. Another group of sellers, are those who purchased their homes prior to the peak, and are willing to defer their selling decision for a year or so, with the expectation of a full market recovery, and then, scoop up those unrealized gains that they now wished they cashed out, at that peak period.

Some buyers are equally out of touch. It is not uncommon for buyers to search in the more prestigious neighborhoods, hunting for houses having the best features and benefits, expecting to snatch them up at ridiculous bargain prices. I mean come-on … we appreciate a good value as much as anyone, but buyers today are looking for turn-key, move in condition, ocean-view properties and at prices well under market value. Sure… there are fantastic values in the market today… but bargains … well, just think about the phrase “bargain basement”, and what images come to your mind. Yeah right! Generally, you get what you pay for, and we just hope that you try not to forget that!

The Real Estate market, conceptually is the same as the stock market. Buyers and sellers come together and exchange value for value via a broker. Some win and some lose. Here is something to consider. You see … many segments of the economy today are characterized as a buyer’s market, and Real Estate is no exception. Worse yet, is that consumers are concerned about the uncertain future of the economy, overall fiscal growth, jobs availability and security, and as such… consumer confidence is negatively impacted. Buyers today do not want to be caught purchasing a home with a looming threat of further declining home prices. So, to some degree, we have a hedge market, except that buyers are hedging on the downward side. Buyers are very well informed these days – so as a seller, we would not place much faith in finding the single moron willing to overpay. Buyers know that the market values have declined by 30%, and to hedge against any further near-term market declines, they are considering offers at 40% to 50% below recent peak-time prices. This represents a throwback to year 2002 price levels.

It is easier to understand at this point why many Real Estate experts are predicting a slow recovery. The gap representing the difference between the seller’s perception of value and that of the buyer, is not narrowing. Pardon us if it seems as though we have personified buyers and sellers as if they are specific personality types – not our intention. Remember, in most cases, you may be a seller in one transaction, and immediately thereafter, a buyer in the next transaction, so your position will easily waiver from selling at the highest, to buying at the lowest.

So … here is the point. If you are a seller, get in touch with the key issues that are driving your motivation to sell, and then evaluate the benefits to you and your family, to moving forward with your life’s goals and dreams. If you are a buyer, experience the gratification that you can achieve your goals and dreams for yourself and family, and stop waiting for the deal of a lifetime. Ironically, as consumers in the greatest nation in the world, our decisions are often paralyzed by having an over abundance of selections.

Our goal is to help and guide people to buy and sell San Diego Homes: Contact us soon - and let us apply for the job of being your Real Estate agent.

Charles M. Schevker (CPA)
DRE # 01875556
Broker Associate
Prudential California Realty
1299 Prospect St.
La Jolla, CA. 92037