San Diego home prices continue to fall as foreclosures loom

Posted on December 28, 2011 by Gavin Linde - San Diego REALTOR

This morning The S&P/Case-Shiller Index of property values was released, and the property values 3.4% from October of 2010. Bloomberg covered the drop in estimates, you can read the full article here. I took note of  few points that made total sense to me as a REALTOR here in San Diego.

” The S&P/Case-Shiller index of property values in 20 cities dropped 3.4 percent from October 2010 after decreasing 3.5 percent in the year ended September, the New York-based group said today. The median forecast of 27 economists in a Bloomberg News survey projected a 3.2 percent decrease.

The real-estate market is bracing for another wave of foreclosures that may keep pressure on home prices, indicating any housing recovery will take time to develop.”

I really think that percentage drop is a little light in my opinion, since it take 20 cities across the US. When I take clients looking to buy a new home in San Diego I am seeing home prices close to 2003 sales prices in many areas of San Diego. I agree with the wave of foreclosures that are going to hit the real estate market in San Diego. When I take a look at Foreclosure Radar I see way to many homes in the foreclosure process, and it seems like the bank have their act together more too.

San Diego real estate prices continue to fall as foreclosures loom

San Diego home prices continue to drop as foreclosures loom

My short sale listing in the San Diego State University area is at the bank right now and is expected to close in less than 120 days as per escrow, that is down from the 6 months or more it used to take to close a short sale. You have to remember my client has a note for almost $250k and we submitted an offer for $110 to the bank. That’s over half price and is the current fair market rate for a 2 bedroom, 2 bathroom condo in that building.

The whole fair market value is based on what other properties in that area, and of that size sell for. Can you imagine when the foreclosure hit what will happen to the value of properties surrounding it, they will fall significantly. I am taking a client tomorrow to see a home in Bird Rock that is almost 3300 sq foot and is going for between 950k and 1.1 million dollars. This same home was close to $2 million when the economy was at its peak. Right now I am working with a few real estate investment clients that are looking to buy homes that they can rent out with cash flow potential. From downtown San Diego to Del Mar you have properties that are prime for this time of investment property investor. This is due to the fact of the huge amount of units that were built in the last 7 years that rent out very easily because they are close to major freeways.

If you are thinking of buying a new home in San Diego, or buying an investment property to rent out I would love to help you. You can always contact me through my web site at www.gl-investments.com or you can call me 858-314-8145.

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Home prices across the United States are at 2003 pricing

Posted on December 8, 2011 by Gavin Linde - San Diego REALTOR

The recent article in USA Today about current home prices and home ownership has some good points, being a REALTOR in San Diego I definitely see many of these issues on a daily basis. Some points that stood out to me from the article were:

“Consumer attitudes have gotten a lot more negative about long-term commitment,” said Standard and Poors’ David Blitzer, after reporting home prices through September had fallen a deeper-than-expected 3.9%, compared with the third quarter of 2010. “They dropped to new lows. This takes them below the point we saw in 2009, where briefly we all thought this thing was about to turn around.”

“Every time we think things are turning around in the housing market, we get hit with some new problem, like last year’s so-called “robo-signing” foreclosure paperwork scandal, which managed to stall the cleansing of distress in the market for over a year. Now that foreclosures are ramping up again, prices are coming down again.”

To be polite let’s just say the current real estate market is a mess. Prices are definitely not at the bottom, and as much as the news and maybe your REALTOR wants you to believe they are, I am still seeing a consistent drop each month in the prices of real estate in San Diego. Not to mention the huge inventory of real estate the banks are sitting on, either waiting to foreclose on, or waiting to put on the market for some reason.

Condo prices across the United States are at 2003 pricing
6955 Alvarado Road Condo on the market for $100 to $120 000

Recently I am coming up with a new issue and that is in the San Diego condominium market, the HOA’s have not maintained their certs. That means if you attempt to purchase a condo in San Diego, and your offer gets submitted, only once you are in escrow do they ask for the condo cert from the HOA. Without that being current, most large institutional lenders will not do the loan, that means cash offers only. (There are some lenders that claim they can get a loan done without current HOA certs for qualified buyers. They are called limited review lenders. Personally I do not see how that possible to make a loan when you are aware there could be issues with the property.)

I just had that come up on my listing at 6955 Alvarado Road, by San Diego State. This listing is a short sale, and one of our offers was a financed offer with 30% down. Right before we accepted another REALTOR told me that a deal in that complex had fallen out of Escrow because the HOA certs were not current, so I have now changed my listing on the MLS to cash offers only till we figure this out. A condo cert addresses owner occupancy rates, litigation and  levels of delinquent HOA dues

My other buyers right now are all holding on the sidelines to see what happens since most who started looking for homes this year have seen the prices of the homes they are looking at continuously drop. Since they are cash buyers that would be money they are losing instantly out of pocket. One of the home I sold at the beginning of this year in downtown dropped in value almost $50 000 in less than 60 days after we purchased it. He financed it and is there for the long term but was still upset. If he was a cash buyer he would be out of pocket $50 000 immediately. Another one of my buyers is looking for homes in Mission Hills, one of the homes we looked at in June that we almost put an offer in on dropped over $200 000 less than 60 days later. The reality is even with these low interest rates tempting people to buy a home, it’s still very unstable.

The flip side is how much lower are we really going to go, and if you really find the perfect home for you then buy it, and that is the point I am with my buyers right now. The tough part is finding that perfect home, because there is not a lot of single family home inventory in San Diego. On the other hand there is a huge inventory of condos right now in San Diego, some of them are truly steals, so it’s going to be interesting to see what happens with these condo certs.

Now is a great time if you are interested in buying a new home in San Diego to live in or as an investment. If you would like to some help finding your new home or have any questions it would be my pleasure to help you, you can call me at 858-314-8145 or through my web site at http://gl-investments.com/contact/.

 

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Real estate prices continue to fall in San Diego

Posted on November 10, 2011 by Gavin Linde - San Diego REALTOR

Home prices continue to fall in San Diego and the rest of the country for a variety of reasons. This morning’s article in USA Today shows some of the real estate price drops from the third quarter. Below are some numbers from the article that stands out to me a Realtor here in San Diego working with buyers.

“Most analysts say they expect prices to sink further because unemployment remains high and many more millions of foreclosures are anticipated over the next few years”

“Sales are on pace to finish this year behind last year, lowest in 13 years, even though the average rate on the 30-year fixed mortgages is hovering near a historically low 4%.”

I am working with about half a dozen buyers right now in San Diego and feeling comfortable buying a home right now is a tough sell. The last property I sold in Golden Hills was a great deal for my buyer because the lot was huge and the home was incredibly renovated. Another home I sold in downtown San Diego has lost 10% already since my buyer bought, that is a huge drop in less than 6 months. The good news is his home is brand new, and he plans on living there for at least the next 7 years, so in the end he will be fine.

Real estate prices continue to fall in San Diego and the rest of the nation

Great rental investment oppertunity as Real estate prices continue to fall in San Diego

 When I show homes to my buyers I am noticing many of the homes in San Diego on the MLS right now are older homes that need renovation. I am also noticing a drop of at least 1% a month so far this year on the homes in San Diego that are listed for sale. REO properties in San Diego are very rare since the banks are trying to save the home owners, and the condominium market is dominating the listing. The downside here to my buyers is the Home Owners Association fees, they are still way to high.

I have a San Diego State University Condominium for sale listing at 6955 Alvarado Rd #54, CA 92120, and after 5 weeks on the market we have received just 2 offers so far. The HOA on this property is $310 a month which is a huge deterrent for buyers. Most buyers do not want to even think about buying a condominium in San Diego right now because of the high HOA’s unless it’s an investment property for them. My new home buyers are mostly cash buyers too so when buying a home for cash any drop in the price is a drop out of your pocket instantly since it’s not like a mortgage amortized over 30 years.

If you are in the market to buy a home in San Diego and you are approved for a loan, then it’s a great time to contact a Realtor and start looking at homes. My opinion is we still have room to go down, but the effects of that will cause even more problems with the future comps. The flipside is buying a home in San Diego right now at these prices beats the money you are paying in rent every day, why renters that qualify to own a home are still renting blows my mind. If you are renting a home in San Diego and you are qualified to buy a home let me show you the properties in your price range, you will be amazed at the selection of homes right now on the MLS to fit any budget. You can contact me, Gavin Linde by phone at 858 314 8145, or through email by filling out this contact me form. Buying a home in San Diego is a great investment in your future, a great tax deduction, and a sense of pride in owning your own real estate in sunny San Diego.

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San Diego State Condo for sale 6955 Alvarado Rd #54, CA 92120

Posted on October 26, 2011 by Gavin Linde - San Diego REALTOR

I just listed a condo for sale by San Diego State University, SDSU, for between $100 000 and $120 000. This 2 bedroom, 2 bathroom condo located at 6955 Alvarado Rd #54, San Diego, CA 92120 can be seen on Redfin if you are not a realtor with access to the MLS. To see the condo for sale listing on Redfin just click the link.

This 2 bedroom, 2 bathroom condominium is great For Investor or First Time Home buyer! Super Clean and Spacious 2 Bed 2 Bath Condo. Located Close to Freeways, the trolley, and SDSU. Perfect for SDSU Student or for someone looking for a condo as a rental investment. The last condo sold in this building for $121 000, so this one should go somewhere in the range of $100 000 to $120 000. For those familiar with this area of San Diego it is right across the street from DZ Akins, the trolley is quarter mile up the street too. If you continue west on Alvarado you drive right into San Diego State University.

Condo’s similar to this one rent for around $1200 a month which makes it a great rental investment opportunity. At the height of the market this condo was appraise for $290 000, so even if it recovers to $200 000 in the next 5 to 7 years it’s a great investment in my opinion for as little $25 000 down payment.

San Diego State Condominium for sale 6955 Alvarado Rd #54, CA 92120
San Diego State Condominium for sale 6955 Alvarado Rd #54, CA 92120, 2 bedrooms and 2 bathrooms

To see what it would cost for you to buy this condominium by SDSU at the current market rates I like to look at the Google mortgage calculator. These calculators give you a good idea of what your monthly mortgage will be, and shows you multiple lenders rates. When I plug in a purchase price of $120 000, with 20% down, I get an average monthly payment of around $515 per month. The home owners association fees for this condo are $310 per month, and lets estimate taxes at 1% of total price per month, so that’s another $120 per month. If you add that together you get a monthly payment of roughly $945. With rents in that area at $1200 less your monthly payment you could have cash flow of $255 per month, or $3060 per year, if you purchased this a rental property.

This sales is a short sale and is subject to lender approval. If you are interested in purchasing this property as a rental investment, or as a primary residence I would love to help you. You can contact Gavin Linde  at GL Investments or you can call me directly at 858 314 8145. To see another example of a rental property in San Diego I did one case study for a downtown investment property and for a UTC/La Jolla investment property. What I like about the prices of these investment properties is the cash flow relative to the 20% down, the upside can be tremendous once the property markets settle in the future. All signs are also pointing to higher rent prices as the peoples who lost their home to foreclosure are moving into rental. If you have good credit and some money for a down payment now is great time to buy a new home, or buy a rental investment property in my opinion.

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Buying an investment property in San Diego for you or your children

Posted on October 20, 2011 by Gavin Linde - San Diego REALTOR

The San Diego real estate market continues offer great opportunities to either buy a new home or to buy and investment property. A recent article on MortgageLoan.com commented on how the demand for rental homes is up sharply.  The statement below from the article is spot on with what I am seeing as a Realtor here in San Diego.

“Rental demand has surged over the past year, with the number of tenant households increasing by 4 percent in one of the few sectors of the housing market that is showing strong growth.

Although some of those were due to former homeowners forced into tenant status by foreclosure or other financial stresses, the majority were merely young people who chose to not to pursue homeownership during a period of economic uncertainty. That’ according to Freddie Mac’s most recent Housing and Economic Analysis, released this week.”

One of the areas in San Diego I have seen hit the hardest is the downtown area, where condominiums are selling for up to 50% below the peak price. Due to factors such as low owner occupancy and high HOA fees you are seeing these units sit on the MLS for long periods of time. Getting loans on some of these building is very hard and the cash buyers are seeing value in buying single family homes with no HOA fees. Many of the past owners of these condo’s lost their property in foreclosures or short sales and are now renters. Take a look at a case study I did of the downtown rental market in San Diego recently, great positive cash flow from a newer condo in downtown.

Another area where I am seeing a large condo inventory is UTC, University Town Center.

Buying an investment property in San Diego for you or your children

Buying a rental investment property in San Diego for you or your children

I went on to Craigslist here in San Diego and pulled up an apartment rental in the UTC area, this is close to La Jolla, all major freeways, and the University of California San Diego campus. The apartment that caught my eye was a 2 bed, 1-1/2 bath end unit condo. Attached 2 car garage. Tennis courts and pool. New carpet, newer linoleum, and fixtures. Washer and dryer, located in the Woodlands Condo area in La Jolla very close to UTC. As you can see this property is being rented out for $1700 per month

I then pulled a similar property in the Woodlands Condo area that was recently listed on the MLS and is currently contingent. This property has the same layout and was listed at $240 000. When I take the sales price and put it into the Google Mortgage Calculator with 20% down I get an average monthly payment of $916 per month. The HOA fees for this condo are $250 per month and an estimated tax would be another $240 per month. If you take the $916 + $250 + $240 = $1406. This condo rents for $1700, this would give you a positive cash flow of $294 per month, or $3528 per year.

In 2008 these units were selling for on average about $360 000, so the potential to sell it in 7 to 10 years and make a great return is there. My point is right now if you live in San Diego, have cash in the bank, or equity in your home, picking up an investment property for a rental is not a bad idea. If you are a recent college graduate, or a young adult that has just moved back in with your parents, talk to them about investing in some real estate for you. For a condo like the one above with a roommate the mortgage payment would be even lower. If you split the rent fairly it would $850 per person, that would take the cash flow per month to $1144 ($294 + $850).

If you are interested in buying a home in San Diego for you, your family your child, or a home as an investment property for a rental now is a great time to start looking. Give me a call at 858 314 8145, or you can contact me by email. If you are on Facebook or Twitter or both we would love to have you as friend.

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Great time to buy a home in San Diego with the 30 year mortgage rate at 4.01%

Posted on September 29, 2011 by Gavin Linde - San Diego REALTOR

Everyone keeps saying in the real estate market we are at the bottom, I think we still have a ways to go. With the 30 year interest rate dropping this week to 4.01% it adds some spending power to new home buyers. A lower interest rates means those new home buyers that are renting at a comfortable payment form them can now buy a home for more in San Diego for the same payment as rent, or if pre qualified for a fixed amount your payments would now be lower each month.

Great time to buy a home in San Diego with the 30 year mortgage rate is at 4.01%

Great time to buy a home in San Diego with the 30 year mortgage rate is at 4.01%

 To illustrate what this means to a new home buyer, take a look at my article from July on buying a rental property in San Diego as an investment. My example back then was as follows:

“I went into MLS and pulled up units for sale in Aqua Vista and currently only found a 3 bedroom. When I switched my search to sold I found a 1 bedroom exactly like the one for rent that sold in January of last year for $175k.

So just to run some simple numbers on this property with a basic Google mortgage calculator with 20% down, your payments as the owner on this property would be around $750 plus the HOA’s for this type of unit are $519, so your total monthly would around $1269. This unit is renting for $1700 a month, which would give you positive cash flow of $431 per month, or $5172 per year.”

Now let’s run this same scenario of $175 000, with today’s interest rates, and you use the same Google Mortgage calculator, with 20% down, your payments are now $658 a month, so that is almost a $100 cheaper a month for the same property in downtown San Diego. With a extra $1200 per year in cash flow. I wish I would of taken note of the interest rate back in July so I could illustrate the difference, but the almost $100 savings a month is powerful enough I think.

As I am constantly looking for homes in San Diego for buyers I am noticing that the homes are sitting on the MLS for a very long time, and then they go through the reduction stage, and if they don’t sell at that point, they either go into short sale, foreclosure, or the owner takes it off the market. I am also noticing the owners of homes in San Diego, especially in the over a million dollars range are switching agents and then relisting the home as new home for sale on the MLS. That is just irritating my buyers, and me too, because we do not have a large amount of inventory right now, and it adds a new home for sale that is not really a new home.

Me personally I see interest rates coming down even more, the problem is financing is very strict and time consuming. The last home I sold went 1 week late in Escrow because the bank changed some personnel and some policies and we almost lost the deal. Everything worked out in the end, and I have to say the bank took care of my client as if he was the President, I have never seen such amazing customer service.

I keep saying this, now is a great time to start thinking about buying a home in San Diego if you qualify for a loan, cash buyers are totally different since they can move in and out of transactions quicker. So if you are thinking about buying a home in San Diego give me a call at 858 314 8145, now is a great time to start looking.

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Mortgage defaults rise sharply in August and median prices of a homes drop further

Posted on September 15, 2011 by Gavin Linde - San Diego REALTOR

It sure is an interesting time for real estate right now in San Diego and across the country. Even with the low mortgage rates and the strong desire to buy a home in San Diego, buyer still have a hard time qualifying for a loan.

Today on yahoo new they reported that mortgage defaults surged from August to July, to read the full article click here. I bolded the statements that stood out to me.

“In all, 228,098 U.S. homes received a foreclosure-related notice last month, a 7 percent increase from July, but a nearly 33 percent decline from August last year. That translates to one in every 570 U.S. households, said RealtyTrac. California saw a 55 percent increase in homes receiving a default notice last month, while in Indiana they climbed 46 percent. Foreclosures weigh down home values and create uncertainty among would-be homebuyers who fret over prospects that prices may further decline as more foreclosures hit the market. There are about 3.7 million more homes in some stage of foreclosure now than there would be in a normal housing market, according to Citi analyst Josh Levin.”

I hope the banks figure this out quicker since the housing market will not recover until we clear these homes out of the pipeline. It also makes new home buyers nervous to buy a home in San Diego because they fear the bottom is not there yet. I personally think we are in the window of the bottom of the San Diego real estate market, the prices will drop further but not much. I understand my cash buyer being hesitant right now because any drop is cash out of their pocket immediately. As opposed to my buyers that are financing their purchase over 30 years.

I am seeing a lot of price reductions right now on home in San Diego as I get my MLS updates each week for my client. What I am not seeing is to many new homes coming on to the market, so I hope so of these homes do get foreclosed on so we can get more inventory. Home in San Diego right now are just sitting on the market in my searches, and after price reductions many are getting close to having to be a short sale.

Something needs to happen soon to get the real estate market in San Diego moving for buyers, I am seeing a huge increase in rental property available and I am advising buyers to think about purchase rental income properties right now. If you have not read my case study on buying a down town San Diego property for rental investment read it and you will see the potential for great returns in the next 5 to 7 years with cash flow.

Thanks again for reading http://www.gl-investments.com, if you are looking to buy a home in San Diego to live in or to rent out please call me at 858 314 8145, I would love to help you. You can also find GL Investments on Facebook and Twitter.

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Mortgage applications continue to decline as fewer homes are sold

Posted on August 31, 2011 by Gavin Linde - San Diego REALTOR

If you are looking to buy a home in San Diego right now it’s a great time to start looking at your options. First though you have to see what your financing status is before you begin this process, because if you are not paying cash the loan restrictions are pretty tight.

Today CNBC reported that mortgage applications and refinance application continue to decline, to read this article click here.  A summary of this article is pretty much the numbers.

“The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, dropped 9.6 percent in the week ended August 26.”

As a REALTOR here in San Diego that makes total sense to me I am seeing my buyers are very much in the looking stage and less in the buying stage right now. Unless it’s a great deal like a home we found in Golden Hills for under 300k and is exactly what my buyer wants. My other buyers are being very picky since honestly they can be in this San Diego real estate market.

Mortgage applications continue to decline as fewer homes are sold

Mortgage applications continue to decline as fewer homes are sold

I have buyers looking in the six figures in Mission Hills and La Jolla and the amount of choices they have are tremendous. The reason they are not buying is because the prices keep getting reduced or the house is taken off the market. Hence the above report of the decline in mortgage applications.

What you are seeing right now are sellers that either have a low cost basis in their homes and want to sell, children who inherited the home, or short sales due to financial troubles. The normal sellers don’t want to let their prized possession go for the current market prices unless they have owned if for over 15 years and never refinanced. So on those cases they take them off the market, and my buyers lose their home as an option to buy. What we are buying are homes where the owner is either relocated for work, or new developments where the builders are selling for cost.

The rest of the homes for sale in San Diego are sitting on the market right now and most are very close to short sales. I also read today that Bank of America is selling off some of its mortgage business, if that is true I wonder if the new owners will just flood the market with the foreclosures or turn them into investment properties and collect rent.

The window of opportunity to buy a home in San Diego is now, it might not be the bottom, but it is really close and with interest rates at around 4.32% for a 30 year fixed your payments will be close if not less then what your rent is now.

Give me a call, I would love to help you find a new home, 858 314-8145, or you can contact me here. If you are more aggressive there are also a boatload of duplexes in San Diego for investment property that I am scouting for a buyer and its truly amazing the inventory and the prices for these multi-family homes in San Diego.

The benefit for buying a multi-family home in San Diego is you can rent some out and live in the one, it’s a great tax write off and the rental income offsets your mortgage.

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Real Estate Investors are slowing down buying homes

Posted on August 23, 2011 by Gavin Linde - San Diego REALTOR

Great article about the current state of affairs of the real estate market and how investors are slowing down their buying of real estate. To read the full article on CNBC please click here. I have highlighted the parts to me that stand out for commenting.

“The inability of most investors to resell homes in the current housing environment has put a damper on their participation in the housing market this summer,” the Campbell survey report. “Investors will ultimately rent out 48 percent of the properties acquired in the month of July 2011. A comparable figure for the month of July 2010 would have been investors renting out 28% of acquired properties.”

I represent a number of buyers looking to buy homes in San Diego and all of them are looking for a new primary residence. I also have buyers that are investors, and these buyers are now taking a step back and making the decision to flip or to sell.

What has happened is these cash investors have bought homes in San Diego at distressed prices, fixed them up, and put them back on the market for sale. Unfortunately home buyers using financing are having a hard time getting loans, and appraisals are coming in low too with comps. For the investors who need that money to keep doing the flipping it is slowing them down significantly, and returns on these real estate deals are not what they are due to pricing. So the path has to be turning it into a rental, what that does is it freezes the money they have for investment in real estate.

Real Estate Investors are slowing down buying homes

Real Estate Investors are slowing down buying homes

I have been preaching that there needs to be a little balance in buying homes for resale and buying them as rentals. Right now the demand for rentals is very high, and I think it might go higher once foreclosures pick and those home owners need to move out. I did a case study awhile back about buying a condo in downtown San Diego as a rental investment property, that to me makes the most sense right now.

The inventory I am showing my primary residence buyers is not moving, I am seeing price reductions, and even sellers taking their homes off the market right now. What’s great for me as a REALTOR is seeing all the great homes for sale in San Diego that are incredibly affordable, and with amazing upgrades and additions. If you are renting right now and you have good credit you really are wasting your money, I would love to show you some great real estate in sunny San Diego that will be the same as what you are paying in rent each month. Take a second and contact me, or you can call me too at 858 314-8145. Don’t forget to visit my Facebook page and we are also on Twitter.

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New home sales continue to fall across the nation

Posted on August 17, 2011 by Gavin Linde - San Diego REALTOR

Read the USA Today article about the fall of home sales across the nation for June and the new homes under construction have fallen as well. Some highlights of this article are below in bold.

“The number of homes under construction is the fewest in 40 years. Just 413,000 homes are under construction, after accounting for seasonal factors. A decade ago, roughly 1.6 million homes were built.”

“Despite historically low mortgage rates, few Americans are prepared to buy a home as the economy fizzles and job growth is painfully slow.”

I am constantly on the road in San Diego with new home buyers and the amount of inventory is astounding. I am not even talking about the short sales in San Diego right now these are traditional sales. I just opened Escrow on a residential home purchase in Golden Hills, San Diego for a buyer. When I looked at the Title report he is paying the same price that was paid in 2002 by a previous buyer. The seller of the property currently bought it in 2007 and is selling it for what is left on his loan, so he has lost his 20% down payment and the principal amount of his loan payment in just 3 years.

Great time to buy a home in San Diego with low prices

Great time to buy a home in San Diego with low prices

What I am noticing more and more with buying a home in San Diego is the seller is not lowering the price to sell it enough. The main reason is they have a loan for the amount they are asking and if they go below that price we are now in a short sale. The home owners that do have equity in their homes are not wanting to sell at fair market value too. I have a buyer looking at homes in Mission Hills in the six figure range and the 24 homes that are listed in MLS are not moving. Of the 24 homes for sale in Mission Hills in that price range we have looked at 12 of them that met his criteria, from there we are down to 3 homes on that list and each home is listed for more than it’s worth currently. I spoke with the listing agent on these home and he explained these buyers do not need to sell that is why they are not reducing their prices, but any offers will be presented.

The other huge factor in buying a home in San Diego is financing, it’s tough to get, and the low interest rates are not enough to get people to buy homes. Buyer using financing are aware the stringent rules the banks are using to fund a loan, and most just do not qualify for the price of the home they desire. I am lucky that half of my buyers are using cash, but they are even more picky since we know that a cash offer is a solid offer. Something needs to happen and the sellers need to realize if they want to sell their homes they need to price accordingly. If not they need to take their homes off the market and try another time, but it seems like we are on track for lower pricing of San Diego homes so that might not be smart.

If you are thinking of buying a home in San Diego you would be amazed at the inventory and the prices out there. Be aware financing is tough, cash is king, but the banks are funding deals if the buyer is A Paper buyer, or better yet a VA Loan. Contact GL Investments, I would love to talk to you and see if I can help you buy a home in San Diego. Thanks for reading my BLOG, take a look at our Facebook page too, and you can follow GL Investments on Twitter too.

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