Well-wishers have been checking in over the last few days after seeing the BW exposure. Most give me the elbow and some version of “Boy, I bet you’re digging this market now!”.
It’s not as rosy as it might appear, especially for the buyers who hope to make a calm, rational decision based on observable value.
Offers tendered on behalf of different buyers over the last couple of days:
Offered 4% under list price – listing agent wouldn’t counter.
Offered 5% over list price - no counter or highest-and-best round, just the Dear John letter: “The offer that came through was quite extraordinary”.
Offered 7% over list – lost.
True, these are desirable properties which deserve attention. But the competition is fierce, and may be ramping up.
Here are detached-home listing stats for three selected areas:
Carmel Valley – The higher-end of 92130 looks like a robust, healthy market. The Under-$1M market looks like it’s on fire though, with 2.2x as many pendings as actives:
2013 SOLDS: 65
2013 SOLDS: 52
Encinitas – The in-between market looks identical to CV, with the lower-end market having 2.5x as many pendings as actives!
2013 SOLDS: 66
2013 SOLDS: 39
SE Carlsbad, 92009 – A very attractive area where you can still buy newer tract houses for less than $300/sf – probably no surprise that there are 1.8x as many pendings as actives under $1,000,000!
2013 SOLDS: 113
2013 SOLDS: 19
It’s not that there is no inventory – these combined sales are 20% higher than last year’s count. There just aren’t many unsold houses laying around, and virtually none of the well-priced, quality homes we all desire!