Are there more, or less ‘bank deals’ being closed around SD’s North County Coastal region?
About the same – in fact, last month was exactly the same YOY (32 REO/SS), just a different mix:
The overall 30% increase in sales was entirely due to more traditional sellers coming to market – the ones who are proud sellers, and have time/leverage on their side. Will buyers concede on price?
If so, more sales will feed on themselves, and some neighborhoods will enjoy pricing momentum if a few houses on a block come on the market early in the season.
P.S. Of the 32 distressed sales, 22 were in Carlsbad and Encinitas (5&17).
For SD county, this week’s median sold price per square foot is up 10% year over year ($199 to $219). Sales are up 14% yoy. Strong numbers for sure. Hard to know how much of the price increase is due to change in product mix, as you say more conventional sales as a percentage, will cause the medians to move quickly.
Also interesting is how there has been no dropoff in prices at all this fall/winter unlike the typical pattern.
http://www.redfin.com/county/339/CA/San-Diego-County
I agree this spring is going to be insane.
Of these traditional sales I wonder what percent are flippers turning a property they picked up as a short sale or REO? Or what percent are people who have owned for > than 5 years?
I know a lot of the traditional sales are flippers cashin in.
I’ll check on the length of ownership question, but will guess that more than half of the NSDCC sellers have owned 9+ years (prior to 2003’s beginning of superfrenzy)
Next year could be muted purely due to greed – 100% gains aren’t attractive enough to some:
John Paulson, the billionaire hedge-fund manager who made a fortune betting on the collapse of the housing market, is now posting strong results in his recent residential investments as he rides the housing rebound.
A $298.4 million real-estate fund managed by Paulson & Co. would be worth as much as twice the total amount invested if the properties were sold today, a Paulson official said at the fund’s annual meeting in Manhattan on Wednesday. The fund has made 11 land purchases and acquired two hotel portfolios.
But Mr. Paulson said at the meeting that he was not interested in cashing much out today. He believes the fund could return several times its initial investment as the housing market continues to rebound.
“We can sell today at a premium but it is not our goal to make a small premium,” he told investors. “The value of land is starting to rise more rapidly.”