North County Coastal
Select a different neighborhood, city or county| Trends At A Glance | May 2013 | Previous Month | Year-over Year | ||
|---|---|---|---|---|---|
| Median Home Price | +2.0% | $560,000 | $549,000 | +30.0% | $430,895 |
| Average Sales Price | +3.0% | $781,577 | $759,117 | +22.8% | $636,586 |
| No. of Homes Sold | +5.5% | 780 | 739 | +1.2% | 771 |
| Pending Properties | +2.8% | 1157 | 1125 | +9.0% | 1061 |
| Foreclosures Sold | -18.2% | 27 | 33 | -72.2% | 97 |
| Short Sales Sold | 0.0% | 40 | 40 | -57.0% | 93 |
| Active Listings | +6.1% | 2010 | 1895 | -25.4% | 2694 |
| Active Foreclosures | -2.1% | 46 | 47 | -54.5% | 101 |
| Active Short Sales | -5.0% | 192 | 202 | -59.6% | 475 |
| Sales Price vs. List Price | +0.3% | 98.8% | 98.5% | +1.7% | 97.2% |
| Average Days on Market | -5.1% | 45 | 48 | -39.5% | 75 |
Market MomentumEnlarge Graph
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Prices & SalesEnlarge Graph
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Sales BreakdownEnlarge Graph
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Days of InventoryEnlarge Graph
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Sales To DateEnlarge Graph
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Sale Price RatioEnlarge Graph
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Last month we saw that the decline in the number of distressed home sales, bank-owned and short sales, has been the main driver in the recent surge of prices.
What we didn’t explain was why there were so few distressed property sales.
When the market was reaching its nadir in 2009, institutional investors poured in with big money and purchased bulk foreclosed properties from the bank, which they then turned around and rented.
That’s why the “shadow inventory” every pundit was trumpeting a few years ago never appeared.
Well, guess what? Those same investors are now fleeing the market.
According to Businessweek’s interview with Bruce Rose, hedge fund manager and one of the first to put money into buying bank-owned property, “we just don’t see the returns there that are adequate to incentivize us to continue to invest.”
What does that mean for the rest of us? First, we’ll be seeing more bank-owned properties come to market. Second, price increases should moderate.
According to http://propertyradar.com, there are 2,734 properties owned by the banks in San Diego County. In the MLS, there are only 236 bank-owned properties on the market.
For buyers, this is good news. The surge in prices should start slowing down to single-digits. We expect this to happen by the end of the summer.
May Market Statistics
Sales of single-family, re-sale homes were up 1% year-over-year. Home sales had been higher than the year before for twenty-three straight months.
Inventory remains problematic. There is only a nine week supply.
The median price was up 23.8% year-over-year.
Sales momentum…
for homes rose 1.9 points to +11.3. Condo sales momentum rose 0.6 of a point to +4.2.
Pricing momentum…
made another solid gain last month, rising 1.5 points to +11.6. Condo pricing momentum gained 1.6 points to +18.6.
We Calculate…
momentum by using a 12-month moving average to eliminate seasonality. By comparing this year's 12-month moving average to last year's, we get a percentage showing market momentum.
Condo Statistics…
The median price for condos was up 34.4% year-over-year. That’s eleven months in a row the median price has risen by double-digits.
Sales were up 4.1% from last May.
The sales price to list price ratio for condos rose to 100.9%.
This is an extraordinarily tough market for buyers. It’s important to be calm and realistic. If you don’t know what to do or where to begin, give me a call and let’s discuss your situation and your options.