It just keeps getting better in the San Diego real estate market. As a REALTOR I am excited for all these bank owned homes to hit the markets for my buyers but alas this morning news says they are getting delayed again at the banks. To read the full article click here, if not here is the summary of what is going on and some real estate facts.
“Companies have probably delayed foreclosures as they await the federal-state settlement, Sharga says. Major mortgage servicers submitted plans Wednesday to improve their processes that were mandated by federal banking regulators. Those plans will be reviewed by regulators and may change depending on the settlement with state and federal officials.”
“The delays mean borrowers get more time in homes without paying mortgages. They also have led to fewer distressed homes for sale, which has probably curbed price declines”
So this is now going on almost 4 years and we still have no end in sight. The chain reaction this causes goes as follows.
1) Homeowner goes delinquent on their loan
2) Bank forecloses on the loan
3) Bank takes back the home and releases to a real estate agent
4) House gets sold at fair market value
5) The sale price is now a comp in that area
Well now the second step is delayed, so we are at a halt in inventory being released and the inevitable happening, lower prices in the San Diego real estate market. I am working with a few buyers right now, and one is looking in Oceanside, San Marcos, and Vista for a 3 bedroom minimum home, and not a condo in need of work. He is shocked at the number of results we are pulling off the MLS with this criteria.
We are thinking that in the next few years we are going to have our military home at Camp Pendleton and using their VA loans, so he wants to have his 10 homes all ready for them. Last key fact about this buyer, is the home we are looking at are under the $200k price.
I took another buyer out for a drive the other day for a 3 bedroom, 1200 sq foot plus, ready to move in home, out of the 11 homes we found we looked at 5 of them. One of them is a state of the art home with a swimming pool and a hot tub, for $429k, it was really hard to look at the other homes after seeing this one.
Then I have another buyer looking for a home in the La Jolla Bird Rock or North Pacific Beach in the six figures range and we can’t find anything he likes right now. So I am hoping the banks start releasing there more because when I go on Foreclosure Radar there is a huge inventory of delinquent homes in that area.
If you are sitting at home, or at work reading this and you have a little cash in the bank, enough for a deposit or you qualify for FHA or VA, I am telling you think about investing in some San Diego Real Estate. If not for rental income, then to live in because there are some great home right now on the MLS in San Diego. Once this mess at the bank cleans up there will be more homes in San Diego for sale, it’s never too early to start looking. Contact GL Investments aka me, I would love to share my insights with you and find you a home.
