My Nov/Dec Opinion on the San Diego Real Estate Market

by Admin on November 24, 2010

The latest news on the San Diego Real Estate market comes from the Fiserv economists, the ones who provide the data for the Standard & Poor's/Case-Shiller Home Price Indexes. They predict an 8.5% price reduction over the next year. On a previous post of mine, I thought that prices would remain flat with a possible decline over the next year or so. Based on the information I have been reading, I stand corrected. I believe there will definitely be a price decline in the San Diego market. Why is this? First, all of the state and federal tax credits have expired to motivate buyers to purchase within a certain time frame. Second, there is still a large amount (How large? I don’t know) of distressed sales for the market to absorb. What is a distressed sale? A distressed sale is a sale on a property due to foreclosure or short sale. Third, we will not see any significant growth in the job market. What does this mean for my clients? THIS IS A BUYERS’ MARKET!!! Over the next 6 to 9 months, it will be ideal conditions to buy. The same Fiserv economists predict that we will not see an increase in prices until 2nd quarter of 2012, over a year to year basis. 2011 will have an initial decline in prices and then stabilize. 2011 will be an ideal time to buy. Interest rates will still be low. My advice for any of my clients is that if you can qualify for financing, definitely consider buying in 2011. If you are a seller, it depends on your situation. If you are in a position where you need to sell, then go ahead. But the most important aspect of selling you house is pricing it at MARKET VALUE! NOT WHAT YOU EMOTIONALLY THINK IT IS WORTH! I have seen too many times where sellers don’t take the advice of their agent on pricing and try to keep lowering their price, chasing a falling market. Instead, price your property at market value or slightly below so you don’t have to chase the falling prices. If you are a seller that is in good position, does not need to sell, has a good job, I probably wouldn’t list my property right now. However, there is one scenario where I would list my property for sale even if I didn’t need to; that would be if you want to sell your property in a market that has already stabilized, and then reap the benefits of buying a property in a market that has declined tremendously. For example, Bankers Hill to East Lake. Please feel free to comment on my opinion of the San Diego Real Estate market. I appreciate the feedback. I have referenced a lot of this date from an article from the San Diego Union tribune. To read the full article, go here. Warmest Regards, J. Rob Handley

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San Diego Homes, San Diego Real Estate, San Diego Realtor, Happy New Year
January 11, 2011 at 3:06 pm

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