SAN DIEGO — Home sales in San Diego County dropped 11.4 percent in June, compared to the same month a year ago, while prices dipped by 1.6 percent, a real estate information service announced Tuesday.
A total of 3,444 homes changed hands locally last month, compared to 3,885 in June 2010, according to La Jolla-based MDA DataQuick. The median price of a home in San Diego County in June was $330,000, down from $335,500 in June 2010.
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Let’s compare last month’s detached-home MLS sales for North SD County Coastal:
June 2010: 256 sales, $385/sf average.
April 2011: 234 sales, $372/sf average
May 2011: 243 sales, $383/sf average
June 2011: 245 sales, $377/sf average.
Sales and pricing are going to bounce around a little, so that is about as steady as possible.
Has there been any increase in sales due to buyers wanting to get in before school starts? Any pressure to pay more, in order to get something done this summer that would be evidenced by more sales?
It doesn’t seem like it, the NSDCC new pendings have been steady too:
New pendings, last 12 days: 101
Previous 12 days: 99
I don’t think the buyers are budging – they’ve waited this long, they want a fair deal.
I’d say Buyers want a great deal. Fair be damned, they want Sellers to being licking their boots.
But steady numbers like these portray a schizophrenic reality, mostly based on Buyers unrealistic expectations. And, anyone selling now is basically asking to take it in the shorts, and/or, waste their time with fair prices that are too high for the current market psyche.
There is some surrender in the air, on both sides.
This is a mature marketplace – it’s been the same for over two years, and the participants are getting used to these conditions.
The sellers recognize by now that they aren’t going to get what they want. Few have a clue as to how low they will need to go to procure a sale, but that’s another subject.
Buyers also see enough houses selling at surprisingly-high prices, that there is some acceptance that they won’t get a screaming bank deal.
Both would like it to be different, but it’s not.
“anyone selling now is basically asking to take it in the shorts, and/or, waste their time with fair prices that are too high for the current market psyche.”
Markets are defined by the prices items sell for. If houses aren’t selling it’s because they’re not priced at a number buyer and seller can agree on.
As much as you’d like to avoid it reality is that prices are going down. (or at a minumum staying stable)
hmm,
I would think its different more complex than that.
Prices are set by what the banks will lend for a given asset in this case,
Given that comps are being (in some cases) driven down to ridiculously low levels, it means that seller cannot get the price because in a lot of cases the bank will not lend that amount due to the scrap heap foreclosure down the road that sold for much less, so you .
In short for most home owners, they are stuck, and they will not sell for the current market price because they feel they are being incorrectly driven down or more likely that can’t because they are underwater, and yes most underwater are going to wait it out, what that means is an economy that is going to underperform until the above is no longer (5 or 10 years maybe)
Real-estate in most locals is 20% or more of the economy (not all locals but most).
Well enjoy !!
And remember
YOU WILL NEVER HAVE AN ECONOMIC RECOVERY UNTIL THE MAJORTY OF UNDERWATER HOME ONWERS ARE NO LONGER UNDER WATER !!
I don’t know about the direction of prices, but sales look like they will be lower for the duration.
Everybody I know and see are buying for long-term, and will likely never move again. If prices went up, they might be tempted to move, but look at all the elderly who stay just because they are priced-in forever.
Lower sales is a tricky topic – pricing could go up or down and not affect those already in. The slow, steady market is being built now, it’s just how long it’ll take to sort through the old mess.
This should be the last month of YoY distortions from the housing tax credit. You had to be closed by June 30th, 2010 to get the credit lat year. The upper end market of NCC continues to do better than the overall San Diego County market, but flat and steady is getting a little boring to talk about.
Constant prices for the next 5 years isn’t so bad. If you can put together a pile of money the hard way, save, grow a business, you’ll be head and shoulders above the rest.
Mozart and Shadash … I think you both are correct in your own way … Best product is still selling within days and is almost immune to larger-market trends … This is the product that everybody wants and it’s still commanding the premium.
As a patient buyer one thing I am concerned about is that … most of the current sales are now happening with “Solid Hands” … these are the buyers who quite likly are not going to be in distress anytime soon, as they are filtered thru a “regulated process” and are more perhaps more disciplined with their buy.
So if I see my dream-house still getting sold for 800k+ … quite likly I will not be able to buy the same in future for under 800k.