Word on the Street - January 2006

Word on the street will be a monthly column I will write just to let all of you know what the insiders are saying about market conditions for San Diego Real Estate during the current month. This article will review on a regular basis the "intagibles" in the market.

What are agents saying about the market?

Title representatives can see the number of transactions occurring on a much broader scale, including those conducted without the MLS (private sales, For Sale By Owner, pocket listings, etc.) These Title representatives visit our office regularly -- sometimes weekly! We definitely talk about the current conditions and what brokerages are doing to get activity going on the sale of their listings. What are the title reps saying?

How about mortgage loan rates and guidelines? The loan rates are fairly visible, but what's tougher to get a pulse on is the voracity with which lenders are scrutinizing mortgage applications. Are they giving incentives for "Full doc" versus "Stated Income"? What about a "Purchase Finance" incentive for new loans on purchases?

These and other important factors will form "The Word on the Street" - a monthly article by Jeremy Katz of San Diego House Hunting.

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The current word is "longer". It's taking longer to identify a buyer for most home sales. Yes -- there are "sharks" out there seeking low-low deals, but most homeowners are content to wait the 50-75 days to get a reasonable offer on their home. It's clear: home sellers should be on notice in San Diego: "If you don't price your home to sell first, it might sell last or not at all!".

Inventories are high enough that just about every home out there is competing with another home that is "fully renovated". That means that the typical comment of "I just painted and carpeted" is not really enough to make your home "POP". A fair price must be established, as well. In other words, most changes that home sellers are making prior to listing their home are realistically intended to "bring the home up to selling standard" - not raise the price, per se!

Late January is showing an increase in activity and it seems the market is "coming out of hibernation" after the holiday season. Both homebuyers and sellers are watching the market actively to see signs of a particular direction. The "waiting game" may finally be broken as real needs for housing supercede the consuming public's concern for the direction of the market. "Ultimately, people need a place to live."

Naturally your feedback and comments are appreciated and you can easily contact me through this system or via our website at www.SDHouseHunting.com . jkatz@sdhousehunting.com

San Diego Market Conditions for January 2006

The word on the street so far this month is that the market is picking back up after a seasonal slowing and a drop-off in prices in the fourth quarter.

Buyer clients are able to dictate more (or simply get into a house!) than before.

Sellers are being urged to set prices that will cause the home to sell. Given the choice of pricing to sell "first", "last" or "not at all", it's critical to price the home to sell first -- or risk selling last or not at all.

Certain markets/neighborhoods are moving more slowly than others as compared to years past when it seemed the entire market moved in unison.

More to come later in the month!