Mike Litton On CBS 8 News At 5:30AM May 30, 2012.
Mike Litton On CBS 8 News At 5:30AM May 30, 2012.
I am fortunate to be invited to appear on CBS 8 News At 5:30AM May 30, 2012.
The topic that I have been asked to discuss is first and foremost, the existing homes sales figures that have been released lately here in San Diego County. It is true that if you examine the last 12 months of existing home sales here in San Diego County, according to SDAR, 10 out of the last 12 months have shown year over year increases. Please see the chart below.
Home prices are starting to increase but only slightly. Consumer confidence and continued local economic improvement appear to needed for sustained home price appreciation to take hold longer term.
According to Alan Nevin, noted economist with The London Group, we are importing 30,000 more people per year than we are exporting and we are only building just over 5,500 new homes per year.
Also, Nevin has noted that we have a rental crisis here in San Diego County in that our current vacancy rate is hovering around 1% which is much lower than statiscal full occupancy, thus we have rent appreciation that is far out pacing inflation. Our ability to build enough rental housing has not kept up with demand for many years now, thus our current rental inventory shortage. This current rental shortage is driving tenants to buy and that is heating up demand for entry level and the second and third levels above.
Please note that the Independent Foreclosure Review deadline to sign up for a portion of the settlement is July 31, 2012. So, if you or someone you know had foreclosure proceedings begun against their home during 2009 and 2010, please let them know about this opporunity and the deadline to signup at www.independentforeclosurereview.com
One item that we talked about is that with the current prevalent financing is available for sales prices of $600,000 and lower and with the lack of financing in the upper sales price ranges they are starting to become the bargains out there in the marketplace. Higher end buyers are having a difficult time finding adequate and affordable financing currently eventhough it is getting better.
Another subject we discussed is that even though inventory is currently low around San Diego County, buyers are still very value conscious, so if you are a seller, make sure that your property is well kept, staged correctly and priced aggressively. Those properties that are not are not selling currently, they are just sitting on the market.
As always, thanks for listening!
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