San Diego REO Market Update September 2006

Current REO Market Conditions* For San Diego, CA

REO Market Statistics for September 2006

Number of NEW ACTIVE REO/Short Sales (September) = 81
Number of ACTIVE REO/Short Sales = 282
Average DOM of ACTIVES = 82
Number of PENDING REO/Short Sales = 24
Number of SOLD REO/Short Sales (September) = 5
Average DOM of SOLD (September) = 67
% Sales Price / List Price (September) SOLDs = 96.6%

Six Month REO Averages

Number of SOLD REO/Short Sales (Six Months) = 29
Average DOM of SOLD (Six Months) = 73
% Sales Price / List Price (Six Months) SOLDs = 97.1%

Broader Market Averages for September 2006

Broader Market DOM for SOLDs = 70 - 80 days

* All data is deemed reliable, but not guaranteed. Data from Sandicor MLS.

Commentary:
The September market for REOs was substantially unchanged from the results in August. DOM has moved up considerably however from 71 to a new average of 82. Further slowing should be expected as we move further into the fall and winter. Banks continue to remain fairly strong in their negotiations allowing a less than 3% discount on asking price – that must be viewed in light of the number of unsold REOs, however. Esssentially, either the property is selling approximately after one price reduction at about 3% off asking price or the property is not selling at all. There are currently 62 homes that have over 100 DOM. Recommendation: Be aggressive with a price cut and get it SOLD – or plan to stick it out past December and into January/February.

We hope you find this information useful. We’ll keep you updated on a periodic and monthly basis. Please contact us if you have any specific requests for information, market statistics, or would like to learn more about our professional results when listing, marketing and selling assets.

If you agree to experiment by using us for your next REO in San Diego, we’ll commit to keeping you highly aware and informed of San Diego Market Conditions for REOs and for the market overall. We hope that this information is useful to you, and may serve to assist you when evaluating the Southern California market, and especially San Diego.

Thank you!

Jeremy Katz
San Diego House Hunting
http://www.SDHouseHunting.com/?s=sep06reoblog
619-497-1834 office
619-497-1836 fax
619-227-5221 cell