South Bay San Diego has been and continues to be a very hard place to buy a home. It has one of the highest amounts of REO
AKA Bank Owned Foreclosures and Short Sales in San Diego County. Chula Vista Real Estate, especially homes priced $300,000 and under, is a very popular price range. I have written well over 100 offers with several clients in the South Bay and have had only 2 accepted. My clients also write good fair offers on the properties they are interested in buying.
Most of the homes in the South Bay are short sales and can stay on the market for many months and sometimes over a year. To a buyer or non savvy real estate agent, this makes it looks like there are lots of homes for sale in the MLS and on sites like Realtor.com and Trulia. The truth is that most of the homes are short sales with many offers on them and no answer in site from the bank on what they'll accept for a sale price. Some short sales I have had offers in on have had well over 20 offers rivaling some of the REO listings with the highest I've seen have well over 40 offers. This market can leave many home buyers discouraged.
The rumor of the second wave of foreclosures, which is not a rumor, is on the way with the hole in the dam already gushing water and the collapse of the dam imminent. But why are the asset managers representing the banks not unloading these toxic assets
faster. This is a good question and is talked about often among real estate agents and REO agents like me. The most logical and most likely among people in the know is waiting for the administration. That's right, it's believed by some that the banks are waiting to see if Obama will buy back the toxic assets with your tax dollars. If the banks sell the REO's now they won't get money from Washington. If the bank sells now they will take the loss on the home which is $100,000 or $200,000 or much more. If they wait for another bailout by Big Brother they can get the money from us "you and me" and not take a loss. Would you wait? Of course this is just talk who knows if it's really true or going to happen.
In the mean time if you're buying a home in South Bay San Diego be patient and don't get discouraged. Buying a home will take time and should be considered and adventure like life itself.
All Information is believed to be correct but not guaranteed.