Well, it has been 6 months since my last update for Rancho Del Oro(RDO) and a lot has happened since then. The lenders dropping many loan programs in July 2007 caused almost a halt of sales for RDO in the next couple months causing a 10% drop in prices in those 2 months. And sales have remained relatively slow since then. 100% financing is limited to sales prices less than $417,000 and buyers for more expensive homes that actually have a down payment are few and far between. Foreclosures have become the driving market force. Many REO(bank owned homes) are now on the market and generating sales, but the lowered prices have hurt all sellers. Successful short sales are practically non-existent, so it means more foreclosures lie ahead.

As of 2/20/08, the good news is there are only 45 detached homes actively for sale in the Sandicor MLS in the Villages of Rancho Del Oro(including the Beachwood community) compared to 77 last August. Plus 17 homes show as Pending status. If that active inventory and rate of offers continues, things could stabilize, but then again, 2007 started out much like this and then the bomb dropped. 

Looking at sales in the past 4.5 months, 23 homes sold for $236/square foot. A year ago it was 44 homes for $277/sf during the same time period representing a decline of almost half the number of sales and 14.8% drop in price for the average 1970sf detached home.

What does this mean for Rancho Del Oro sellers? The good ole days are gone and you need an experienced, honest real estate agent and financial advisor to make sure you understand your best course of action. For buyers, you need to keep a long term perspective, and buy a home based on need not speculation.

More about the area can be found at http://www.NorthSanDiegoHomes.us