This offering is the first in a series of informative articles about all things real estate. I am Del Phillips, Realtor with Ascent Real Estate, and I will be bringing you news and views of our communities and general real estate topics that I hope will interest you.
I was born and raised in Hillcrest and have worked for more than 16 years serving buyers and sellers throughout San Diego county. I have broad experience with residential, multi-family, condominium, PUDs, investment properties including traditional sales, bank owned, and short sales. So let’s get started, and thanks in advance for tuning in.
I have good news. We know the real estate market has its ups and downs; it is cyclical after all. It’s been in a severe slump since about 2006 and sellers have been waiting for conditions to improve so they can put their homes on the market. There are currently about 4,800 homes for sale in San Diego and that represents an increase, but listings are still lagging as sellers bide their time.
So what’s up? Demand for one; as buyers believe they’d better jump in before it’s too late with mortgages still holding at low interest rates. Confidence is up too; as buyers see houses being scooped up and literally flying off the shelves, sometimes at higher than asking price.
Values are up and so are prices. They are at a five year high, with the current median price in May at $406,500. The recession brought values down considerably, but it appears prices have returned to 2008 levels, and are still climbing.
Going up too are sales numbers and hopefully new listings. There were 4,236 properties sold in the county, the highest since 2006.
Up is good, there’s no denying, but some of the ups are challenging. As the market heats up, competition for properties increases too. The influx of cash buyers has made it more difficult for buyers requiring mortgages to take the lead and beat out other bidders, especially investors and potential re-sellers. Demand has been pent up, and sellers are jumping on new listings.
Brokers like myself are heartened by the ups as we emerge out of the slump that gave us plenty of worried brows over the past few years. Phones are ringing and we’re spending a lot more time in our cars than offices. But there are a couple of downs too. Supply is down, as seller enthusiasm has not quite caught up with buyer demand. The bargains and distressed sales – foreclosures, short sales – that have occupied us in the last few years are drying up. Their high was reached in 2009, and inventory is being absorbed as we go forward. Interest rates have held, at least for now, but investors and cash buyers have crowded out buyers needing mortgages. Loans are available, but requirements are more stringent.
All in all, the news is pretty good for sellers, buyers and yes, brokers. We’re all just hoping UP is here to stay.
Have a happy and safe Pride!
Del Phillips is a California Licensed Real Estate agent. He is a member of the National, California and San Diego Association of Realtors. You can reach Del at Ascent Real Estate at 619-298-6666 or at Del@DelPhillips.com DRE LIC #01267333
