Who cares about all the hoopla about listings flying into escrow – ARE THEY CLOSING?
Here’s the graph of weekly sales of detached homes from La Jolla to Carlsbad – the most recent three years are in bold, with three previous years included with thin lines for flavor:
(click on image for slightly better clarity)
Sales tend to increase towards the end of every month because of pro-rations (the buyers’ responsiblity for interest and taxes go down as they approach the end of the month).
With the dip in interest rates back in March, you’d figure that the end-of-May sales this year would have been at least as good as 2008. But they aren’t. While sales perked up in June last year, this year the North County Coastal region is looking weak – only 30 closings reported so far for June 16-22, 2009, which would send the red line even lower.
Yes, there will be late reporters, but if we don’t see a surge in closings over the next couple of weeks between La Jolla and Carlsbad, we’ll start wondering if this spring/summer selling season is going to fizzle out.
The biggest concern? In the first half of June, 2005 there were 34 houses that closed in Rancho Santa Fe and La Jolla. This year? 13.
Currently there are 593 active detached listings in those two zip codes!