San Diego Real Estate – Sales Increase
As the economy fights to turn around, political parties struggle for control and consumers look for any sign of confidence the San Diego Real Estate market is gaining traction. Foreign investors are taking advantage of the short sales and foreclosures and inventory is less compared to the previous year.
If you are looking to purchase real estate the opportunity may right. Home prices are much lower relative to historic figures and interest rates are at all time national lows.
- Photo By http2007’s photostream via Flickr
In an article posted by 10News.com 5/14/2012 they write:
Next week, in a short sale, a one-bedroom condo in La Jolla’s Villa Vicenza will close escrow with a $150,000 price tag. The new owner is a Chinese investor. Realtor Scott Cheng represents the buyer.
Cheng said in the past year, he has seen a jump in calls from Chinese buyers who are interested in San Diego as the housing boom in China comes to an end.
“Their bubble has popped,” said Cheng. “Now they’re looking to diversify their portfolio… They think the housing market in San Diego is at its bottom.”
According to the National Association of Realtors, in the United States, the Chinese now rank as the second largest foreign buyers of homes. In the 12-month period ending in March 2012, that translates to $7.4 billion in sales, which is up 24 percent from the previous 12 months.
See the full article at http://www.10news.com/news/31063868/detail.html
With the amount of affordable buys foreign and local investors are taking advantage of the distressed real estate market.
For a better sense of what is happening not only locally but nationally consider what Steve Cook of Real Estate Economy Watch had to say on 5/15/2012:
It may be hard to believe, but the dramatic drawdown in inventories during this spring buying season is bringing some cries of “housing shortage” from hotter markets around the county. But is there solid evidence to support such a claim?
On Realtor.com, year-over-year inventories are down 21.48 percent through March. NAR reports first quarter inventories existing homes are down 21.8 percent nationally. At the end of the first quarter there were 2.37 million existing homes available for sale, a 41 percent decline since the summer of 2007 when inventories set a record of 4.04 million homes.
“We now have broad shortages of lower priced homes in much of the country, with very tight supply in Western states for homes through the middle price ranges. This is good news for many sellers who wish to list now, or for those waiting for prices to improve,” said Lawrence Yun, NAR’s chief economist last week.
Reports of multiple bids, price increases, slim pickings and discouraged buyers leaving the market are popping up in in a few markets, largely the nation’s hottest markets where inventory declines exceed the national averages but also major foreclosure centers like Phoenix where have been falling until recently. In others, unique local conditions such as the opening of factories or military facilities, natural gas booms in Pennsylvania and North Dakota, and seasonal shortages in university communities are causing market tightness.
In the Washington DC market, perennially one of the top ten nationally in price increases, evidence is strongest that the pendulum may be shifting towards a seller’s market for the first time in five years.
“Even though there’s a glut of homes throughout parts of the country, the Washington region seems to have the opposite problem, especially in the lower price ranges.
“Many of the outer suburbs still have plenty of houses in the lower price ranges. But less-expensive homes are very hard to find closer to central D.C.: 68 percent of homes offered for less than $350,000 are located in the outer suburbs beyond Montgomery County, Arlington and Alexandria. In the District, Redfin counts only 862 listings for less than $350,000,” reported the Washington Post May 4.
California markets like San Diego and Irvine where home building has been at a virtual standstill and is strictly controlled, population growth is creating new demand for housing.
Although this has been a hot market for San Diego real estate buyers, Seller interest has also piqued in the last quarter. Partly due to the decreasing inventory, certain areas have even seen price appreciation.
For more info on buying your next home or selling your current home, call ScottWay Capital at 619.209.3544 for a free personalized buying/selling consultation.
Also, see below for a list of properties currently for sale.
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