Low inventory affecting state and nation
It’s not just happening in San Diego
Although the real estate market is highly localized, it is always good to be aware of the state and national perspective. In the case of San Diego, these markets mirror the local market fairly well.
The California Association of Realtors reported that sales were down 2.7% from September 2011. While part of the reason is that there were fewer business days this September versus last, the majority of the reason is because of lack of inventory. In fact, an article in the Los Angeles Times says that the number of homes priced at or below $313,000 is down a whopping 40% from last year! These low priced homes are usually distressed sales (short sales and foreclosures), and the San Diego Daily Transcript reported that foreclosure activity in California fell to a new five-year lower in the third quarter, with default notices falling 31.2% from the same period last year and 63.8% from the first quarter of 2009. It’s no wonder that inventory is so much lower.
According to a recent article in the San Diego Daily Transcript, the National Association of Realtors reported that sales of resale homes fell 1.7% in September from August, but they were up 11% from a year earlier. Mirroring California as well as San Diego, the main reason is lack of inventory to feed the demand for housing.
Back home in San Diego
A group of real estate experts recently met in a roundtable forum, hosted by the San Diego Daily Transcript, to discuss the market in San Diego. The participants agreed that inventory is being restricted by underwater homeowners. In the past, move-up buyers would purchase homes while putting theirs on the market, creating a balance in inventory. However, currently would-be move-up buyers are underwater on their mortgages and can’t afford to make that move. Thus, the extremely tight supply of homes for first-time buyers who are competing against cash-buying investors looking to flip the properties.
Recovery is quick…and inventory is why
An article from the Los Angeles Times quotes economists and real estate experts who express surprise that the real estate recovery is happening so soon – and so quickly. They cite low interest rates and more affordable housing as important factors, but they also point out the primary reason for the recovery – low overall inventory, both in foreclosure properties and new construction.
Bryan & Allison Devore are known as the best Rancho Carrillo Real Estate Agents with nearly 100 sales. We incorporate proven, professional state of-the-art techniques specializing in assisting buyers and sellers with regards to Rancho Carrillo homes for sale in Carlsbad and all surrounding areas. Contact us today for all your Rancho Carrillo Carlsbad Real Estate needs.
Bryan and Allison Devore
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