Rancho Santa Fe real estate updates

November 27, 2010 by
Filed under: California 

Rancho-Santa-FeRancho Santa Fe real estate, a primarily residential and upscale section of the San Diego County housing market, may be facing a ‚double-dip‚ if the current downturn in the local market continues. According to a November 11, 2010 article from the San Diego Union Tribune, San Diego County, as well as other metro areas in the county that had been improving, may be experiencing a double dip in home prices, new reports showed Thursday. The turnaround from recent quarterly increases came in spite of homebuyer tax credits and low interest rates intended to boost the housing market out of its five-year slide. The National Association of Realtors ranked San Diego as the 51st best market out of 155 in terms of home-price appreciation in the third quarter, compared with the same period last year. But the group also reported a downturn from the second to the third quarter, a trend also picked up by Zillow.com, which estimates home values after excluding foreclosure sales. The Seattle-based company said San Diego as well as four other California markets, were the only ones nationally that posted price declines in the third quarter after five quarters of an increase. Zillow chief economist Stan Humphries said the turnaround may reflect the fact that state had offered homebuyer credits on top of those at the federal level and thus pulled in more buyers who sped up their purchasing decisions. Now demand is down, even as inventories rise.

However, the sales rate of Rancho Santa Fe homes for sale may be adversely affected by two weaknesses in the local economy, identified by Mark Cafferty, the CEO of the San Diego Workforce Partnership. Mr. Cafferty stated that ‚ in terms of our economy and our work force, San Diego differs from the rest of the state and country in many ways. Some aspects of our economy exploit our strengths, while other aspects present challenges that must be addressed‚ First, too many jobs in San Diego were tied to the now-devastated housing market. The unemployment rate among those employees working in real estate and residential construction is almost 50% higher than the full unemployment rate. Second, too many of San Diego’s lower-wage earners lack the basic skills needed to take advantage of the available education and training opportunities, and they are struggling to maintain in a fragile labor market.

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