The December home sales numbers for San Diego came out and are a good reflection of how the overall market performed for 2011. Close to one third of all sales involved a foreclosure and about 20% of sales were a short sale.
The overall sales numbers were higher than a year ago, but still more than 20 percent below the average number of transactions for the month. There was a small burst of sales activity in December, but not enough to boost the value of homes in the region. San Diego has nearly 4 percent more sales when compared with December a year ago, but the average price was down almost 5.5 percent.
“Prices continue to be weak because of the weak job growth and the difficulties a lot of people have getting a loan to buy a home,” said Andrew LaPage of the real estate tracking firm Data Quick. “There’s still an emphasis in the market toward the lower cost distressed properties.” The median San Diego home price fell just over 5 percent from December a year ago. The average price of sales for December was $315,000, which is down from $333,000 a year ago. “We think there’s still a lot of people sitting tight, waiting for something to happen. Either a clear sign that prices have hit bottom. Or the opportunity to qualify for financing,” said LaPage.
Our opinion on it is that there are still a lot of homebuyers waiting on the market to see if there will be further declines.
According to a survey of 109 economists that was released in late December by Zillow, Inc, US housing may fall further under the weight of foreclosures and not rebound until 2013, even as the economy builds momentum and mortgage rates remain at record lows. “Negative equity, unemployment and low consumer confidence remain the key factors delaying a true recovery,” Stan Humphries, Zillow’s chief economist, said in a statement.
Prices will fall 1% in 2012 and rise 2% in 2013, Frank Nothaft, chief economist for mortgage-finance company Freddie Mac, announced in a Dec. 14 report. “A full-fledged recovery in the housing sector will likely elude the US in 2012, but new construction and home sales are expected to be greater than in 2011,” Nothaft wrote.
More than a quarter of homeowners with a mortgage are “underwater,” or owe more than their property is worth. Prices may drop an additional 7%, according to Scott Simon, head of the mortgage- and asset-backed securities teams at Pacific Investment Management Co. in Newport Beach, California.
As you can see from the three statements above, there is a consensus that there will be a continued decline, but no one knows for how much longer or how much. This is another reason that we strongly encourage anyone considering a short sale to start the process now and get out of the property before they lose any further equity. If you get out of the property now and begin the rebuilding process, you will still be able to take advantage of the low prices and the bottom of the market in 2 years.
An annual report of foreclosure activity in the US for 2011 found the number of properties subject to default notices, scheduled auctions or bank repossessions dropped 34% from the previous year, according to a RealtyTrac report released today.
California still has an above average percentage of homes with at least one foreclosure filing in 2011. In California, 3.19% of homes had at least one foreclosure filling in 2011. Other states with an above average number include:
Arizona – 4.14%
Georgia – 2.71%
Michigan – 2.21%
Florida – 2.06%
Illinois – 1.95%
Colorado – 1.78%
Idaho – 1.77%
If you are facing foreclosure or have any questions regarding a short sale and the foreclosure process, please do not hesitate to contact our team. We specialize in San Diego Short Sales, Orange County Short Sales and Riverside Short Sales.
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