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4s Ranch Market Update June 2012

By
Services for Real Estate Pros with Award Referral Network Inc. DRE#00915227

4s Ranch is a neighborhood in the Rancho Bernardo area, located in the North Inland part of San Diego, California. It boasts a state of the art high school, as well as a master planned community with a water park and sports fields and a community swimming pool. It has a good sized shopping center that includes a Ralphs' supermarket, Jimbo's, a public library, and several restaurants along with a Karl Strauss restaurant that is currently being renovated from where the previous Chili's used to be.

There are currently 19 active listings in 4s Ranch, 2 of which are condominiums, 3 are townhomes and the rest are detached homes. On the bright side 38 properties are in contingent status, which substantially more than last year. Contingent status means they have offers waiting for short sale approval. In pending status there are 18 properties, 14 of which are detached.

Like other areas, there is much less inventory in sold status; in the last 30 days only 3 properties have actually closed escrow and sold. Their sold prices ranged from $440,000 to $729,900.

In the active category this month, we have a higher end home that tops out at $910,000 and in the more affordable arena there is a condominium priced at $360,000.

Overall, the market is moving, but the contingent category continues to lag behind the rest of the market because as an industry, we are still dependent on investors’ decisions, since they own the loans that the mortgage servicers are trying to sift through. The process is stagnating most transactions going forward since the mortgage servicers sometimes have more than one investor they have to seek approval from before processing a short sale. Some investors are ready to cut bait and get their money moving again, and some investors want more, which stalls the short sale process. Often times no one wants to kick in the extra thousands that a second lien holder might want. So, buyers walk away and the short sales they don’t finish have to start looking for new buyers again. Some banks only give the listing agent 8 days to replace a buyer before filing for foreclosure.

Obviously, some lien holders feel they have waited months with no income and believe they can wait another 4 months for a couple of thousand dollars more from a new buyer. Unfortunately, sometimes it means that a home might sell for even less than the processed short sale price, when the home ends up going into foreclosure, since sometimes a new buyer just can’t be found before the deadline given by the bank. Banks are in the business to make money, the more homes they can sell in foreclosure, the faster they can turn those proceeds into dollars that can work for them.

4s Ranch Market Update June 2012

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