As summer winds down, the only listings left are those that have been picked over – and the majority have been kicked around for months.
Here is the rundown of the current active listings of detached homes from Carlsbad to La Jolla:
REOs – 10
Short sales – 30
“Traditional” – 1,007
Total = 1,047
I guess we can call this a non-distressed market?
But it appears to also be an un-motivated market too, because anyone who is close to having the right price has sold by now – at least anyone whose list price was within 5% to 10% of being right.
Yet the majority of elective sellers aren’t willing to adjust their price enough to get in the game.
571 of the 1,007 houses for sale were listed for sale prior to June 1st, and their average is 160 days on market.
They are missing the hottest market in years. There have been 17% fewer houses listed this year, compared to 2011, and mortgage rates are setting new-record lows every day.
For those buyers hoping to spend less than $1,000,000, the news couldn’t be much more bleak. Ignoring the majority because they are crusty and stale by now, let’s focus on the 436 houses listed since June 1, 2012.
Of those 436, there are 327 of those priced over $1,000,000, which leaves just 109 houses for sale priced under $1,000,000 that have been on the market for less than 53 days in NSDCC (an area that has approximately 80,000 houses total).
Here’s an Encinitas townhouse going for just $200,000 over peak 2006 pricing!
To go along with the three L’s of real estate, I give you the three M’s of real estate. More Market Manipulation.
http://www.bloomberg.com/news/2012-07-23/goldman-sachs-sees-strong-recovery-starting-for-housing.html
Triton listing – 1815 square foot older renovated townhouse – says “Difficult to find anything under $1 million at the beach in prime condition”
Here’s a 3150 HOUSE brand-spanking new that just closed – WEST OF 101 – for $975,900.
http://www.sdlookup.com/MLS-120016946-668_Calypso_Pl_Encinitas_CA_92024
I’m sorry, isn’t this a misprint? “Yet the majority of elective sellers aren’t willing to adjust their price enough to get in the game.”
Shouldn’t it read, “Yet the majority of BUYERS aren’t willing to adjust their price enough to get in the game”?
Isn’t this area the greatest spot in America to live? I heard an offhanded comment the other day that condo prices in NYC have barely fallen and typically run close to $1,000/’. If that’s so, how can it be that so many people here are still opining that our prospective sellers have not yet come to their senses?
Buyers need good help in this market.
Under given market conditions and at the going rate, prices could catch up to Bubble era prices much sooner than expected. Almost all Neo-buyers are buying with strong hands and future distress is expected to be relatively small (if any). Under 1 Million market along North County Coastal is heating up, as most of the available land was build-up in the last decade. No more land is available to build another Aviara and Bay Collection.
“Need to sell” sellers are easy to ID. Prices tend to be very reasonable, and after sitting for a couple of months, the price reductions start to happen.
But if a seller is not within the “need to sell” group, why lower their price to meet the buyers?