San Diego Buyers' Market Projection

San Diego Buyers’ Market Projection

In Rancho Penasquitos (92129), Rancho Bernardo (92127 & 92128), and Mira Mesa (92126), there is still buying opportunities for distressed properties such as Short-Sales, and REO or Real Estate Owned by Banks.  I chose these three market areas because these three market areas have and is showing stabilization.  This stabilization started beginning of this year(2010) when compared to last three previous years in Sold median price, Sold units, and Sold average days on the market.

In Rancho Penasquitos (92129), the hike in Sold median price began in 2004 and peaked late 2007.   Respectively, $455,000 to $650,000.

An example of a good deal is a property on Sundance Ave in Rancho Penasquitos (92129) that just came on the market (REO) for $499,000. My read on this pricing strategy by the bank is simple:

• Price it below market value
• Obtain multiple offers thereby driving up the original price (it should).
• Sell it quickly and get it off the books.
• Original loan amount from what I can see shows the bank will make a nice profit (which is a goal for all of us when investing in a property).

The property located on Sundance Ave in Rancho Penasquitos (92129) has a pool which demands in general 10-15% higher market value.  I would seriously consider this property if I was in the market.  If anything, just based on the communal amenities in this area such as Poway School System amongst one of many. 

In addition, the Community or Zip code (92129) shows a Sold Median Price of $559,000 for the month of September 2010 while for this neighborhood (where Sundance is located) within the zip code with respective square footage, built around comparable years, bedroom, and bathroom shows a Sold median price of $539,000.  

It is the opinion of this broker that this good deal is reflective of San Diego Current Market Condition and thereby other less-stabilizing areas (surprising) within San Diego County (which I have mapped out) should reflect the continuation of the on-going buyers market. 

What’s interesting to me is that the pace in which shadow inventories, inventories held by banks and not listed in this case, are being listed at current market value and are showing an uptick.  It is not a surprise because I have been charting the San Diego Market Conditions by communities or zip code to spot trends and areas mentioned above are definitely stabilizing.   

When will the buyers market end?

It is my opinion that nearly all sub-prime and interest only loans will mature by mid 2012 and the Buyers Market for short sales and REO will continue in majority of San Diego Communities if the current unemployment numbers hold above 9 points.

In San Diego County, total reflection of distressed property (SS, REO) to total sales make up only about 25% of total sales and it has been declining.

Depending on your must haves, if you are looking for a below market deal as a future homeowner, we should talk.