Your San Diego Real Estate Resource
Jennifer St.Clair
858-384-4057858-384-4057

Games People Play in the wild, wild West!

Have you heard what is going on in the San Diego housing market?  A feeding frenzy of frantic investors and first time home buyers all trying to get their little slice of heaven before the market turns and the tax credit expires.   It is common to see 50 or more offers on any bank owned property within two days of listing on the MLS.  Even short sales are getting multiple offers in record time.   Open houses are drawing people by the scores!   We are down to only 2 months worth of housing inventory compared to over 10 months worth one year ago!  It can only get crazier as we near the deadline unless a wave of foreclosores hits the market.

So we San Diego Buyers Realtors find ourselves in the uncomfortable position of competing with dozens of other offers, making offers well above what the home could ever possibly appraise for just to get ours client’s offer accepted. In this marketplace it’s who you know and to be an agent with a reputation of getting the deal done. I have been networking with investors and that has opened up opportunities for my buyers to bid on properties pre-MLS.  One other deals I call and have a frank discussion with the listing agents and let them know I am not interested in making frivolously high offers that will not appraise, but I AM interested in bringing them a solid buyer that will perform. Those flowery cover letters of yesteryear do not work in the San Diego market right now. This frank talk has worked very well getting my offers accepted but I still had to offer 30K above the nearest comp (100% VA financing). Let the games begin!

It’s the wild wild west out here right now and you’ve got to saddle up and get creative, riding with guns blazing!  Folks are staking their claim to their little slice of heaven and who wouldn’t want to live in America’s Finest City.  And BTW, the Mythical Green Flash is real! I saw it myself for the first time recently while enjoying a La Jolla Sunset. Life sure is sweet!

San Diego Homes Prices are on the Rise ending a two yr skid

Not that I needed this Union Tribune article to tell me that!! Everyday I see bidding wars and offers that appraisals won’t support. All my  buyers that are sitting on the fence need to start fishing.

Why is it that they have to see the news in print to believe it? Isn’t the advice of a qualified professional enough?   It is my personal opinion that because our industry does not charge (hourly or daily as do lawyers accountants etc)  for our time or advice when working with clients we create no value for ourselves.   Thus our clients don’t really realize how much time and money we spend on them.  If we charged hourly for the work we do for them they would be shocked at the bills they received! I think our industry’s reputation as a whole was tarnished by the sub prime debacle. Let reinstall confidence in our clients and help the economy by selling some homes.

Here is a link to our local paper’s article this morning about Southern CA home values.  Now if we can only get the loans funded!!

http://tinyurl.com/mse235

I’d love to hear how your local market is faring.

Jennifer

Shrinking Housing inventory in the San Diego Market makes for frustrated buyers

My ACT! database is full of qualified buyers clamoring to find their dream home, their “bargain” home now selling for 50% off their value two years ago. Many of them are at a price point of $200-350K which in San Diego is the first time home buyer level for which thousands of other buyers are also competing, driving up the bidding to levels that the comps and the appraisal won’t support. It is common to see listings with literally dozens of offers!

On May 20 our local MLS, Sandicor, added a new status of contingent to reflect all of the short sales that are pending approval. This, we all agree, is a great idea to save time and more accurately reflect the truely Active listings . Then this morning California announced another 90 moratorium on foreclosures insuring that going into our bread winning, hay making summer months it is going to be a nightmare finding homes for these buyers.

Now don’t get me wrong, I am happy that CA is mandating that banks focus on loan modifications for deserving homeowners. The problem is that a very large percentage of those loan mods are re-defaulting 6 and 9 months later because they couldn’t afford the home in the first place and their principle balance was not reduced. Sad and painful as it is in the short run, if the banks are not going to do principle reduction then would it not be better to simply foreclose and put other qualified buyers in to these homes and clean up this mess quicker? Would this be better for everyone involved? Sometimes I get slightly envious of Realtors in markets like Phoenix that have a plethora of choices for their buyers.

I would be interested to hear your thoughts on this.

Namaste’

Jennifer- San Diego REALTOR