Rancho Santa Fe real estate updates

November 27, 2010 by · Leave a Comment
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.

The San Diego real estate market

September 30, 2010 by · Leave a Comment
Filed under: California 
Seal of San Diego County, California
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The San Diego real estate market, a component of the larger Southern California housing market, has started to show signs of weakness after recovering for several months straight. According to a September 20, 2010 report from the San Diego Union Tribune, “San Diego County foreclosures and defaults rose from July to August, but analysts said it is too early to tell if this marks the start of the long-expected burst of distressed sales as so many homeowners run out of options. According to MDA DataQuick, August foreclosures totaled 1,026, up 15.4 percent from 889 in July, and notices of default rose 19.5 percent from July’s, 1,664 to August’s 1,988. Some experts, pointing to lower figures a year ago, said the August report from MDA DataQuick shows that lenders are not eager to evict owners and resell the properties. Instead, they are quietly letting owners get by with continued delinquencies on their monthly payments and hoping things will improve. “Bankers are incentivized to just extend and pretend,” said Sean O’Toole, CEO of ForeclosureRadar.com, Discovery Bay company that analyzes foreclosure data. Defaults were down 25.2 percent from year-ago levels of 2,658 and foreclosures were down 14 percent from 1,193 over the same period. DataQuick analyst Andrew LePage said the uptick in August reflected the large decline in sales this summer, after the popular federal tax rebate ended for home buyers. With demand down, lenders then increased their default and foreclosure actions.”

The number of San Diego homes for sale which were actually sold decreased from year-ago levels, partially because of the expiration of federal housing tax credit. A September 14, 2010 report from KPBS News noted that “Home sales in San Diego County have dropped from August 2009 to August of this year. The San Diego Association of Realtors report for existing homes in the county shows sales down 8 percent from August 2009 and the average sales price down nearly 4 percent. Mark Marquez, president of the Realtors Association, said the average sales price for homes last month was $262,000. Marquez said while homes in the entry level have been selling, the sales pace for higher-priced homes was slower in August. “As you escalate in price point it does soften a little bit, meaning there’s more inventory,” said Marquez. In the near term, he expects most of the sales volume to be generated from homes priced at $500,000 or lower.”

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Carlsbad, California Real Estate

March 25, 2010 by · Leave a Comment
Filed under: California 
Official seal of City of Carlsbad, California
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A coastal community located in Northern San Diego County, Carlsbad, California, is a relatively affluent community that has nonetheless been unable to escape the claws of the battered U.S. housing market woes. The Carlsbad real estate saw an initial dropping off of prices that seemed unstoppable, but as of recent months, slight improvements have been seen, pointing to signs that perhaps the bottom has been reached and now it’s time to climb back out.

Though sales through most of 2009 of homes were brisk and showed an increase over 2009, median prices of Carlsbad homes for sale struggled. The market kicked off 2009 with a median price of more than $700,000 and finished off the year in December with the median at around $620,000. The median price hit bottom in October at around $600, and then saw increases in November and December. Sales activity actually reached a yearly high in December, when 70 homes were sold.

Condo prices showed a similar trend. They started off 2009 with a median price of around $375,000 and finished the year in December at around $330,000. The lowest point for the condo market was also reached in September and October, and prices began to see ever so slight increases in November and December. Sales activity of condos remained mostly consistent, with around 25 to 30 sales per month.

These trends from the end of 2009 show that perhaps 2010 will be the year the the Carlsbad real estate market regains momentum and begins to see steady increases month over month as the U.S. economy slowly starts to pick up and residents return to employment and resume normal activity.

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