Real Estate Market

As in all markets, “Buy Low, Sell High.”

This is Low.

QED

Foreclosure Management (Finally) by Lenders

It appears that reality is raising it’s head so high that even Lenders can see it.

 

The North County Times is reporting g that lenders are holding off on putting still more homes into foreclosure – finally understanding that by increasing the pool of foreclosed homes they weaken the economy and force still more homes into foreclosure.

 

The report is that some 4,000 homes have gone into foreclosure in the past year in North County compared with 1,300 last year. About 1,000 homes have Notices of Default filed monthly, and about 820 homes are sold each month. When combined with the normal homes that come on the market each month, that obviously increases the inventory.

 

In Hidden Meadows MOST of the new listings are NOT short sale or foreclosures.,

 

Obviously, there are benign reasons for people who must sell distressed-priced property – illness, age, divorce, job change can happen to anyone, anytime and a “forced sale” must be discounted in any market, but the results are exacerbated in a market already over- filled with homes of greedy lenders and buyers who inflated their ability to pay.

 

Lenders are apparently deciding to take some of the responsibility by delaying by four extra months (over the normal four months) before starting the process.

 

Even Lenders – probably the world’s worst money-managers – have received the economics message. Someone must slow the downward spiral, and Lenders CAN do that. Unfortunately, both political parties have agreed on the need to bail out both the Lenders and the greedy Buyers, meaning that an opportunity for a lasting lesson in basic economics will not be learned.

 

 

 

 

List of Homes for Sale

All of my 15 printed lists of all homes listed by everyone in the Meadows disappears weekly from Alex’s Deli, but of course I have no idea who takes them.

 

I suspect it is about equally divided between construction workers and Owners of homes in the Meadows who just want to track the “market.” That’s fine, but it would be easier to send me an e-mail and get on the e-mail list for the same information.

 

If you go to Alex’s for pizza early in the week anyway, it makes no difference, but it is easier to get the information by e-mail. It makes no difference to me, I have to do both, so make it easy on yourself.

Favorite Views and Caravan Homes

Recently we had the opportunity to have a Caravan, although there was none this past week,

 

During the Caravan, I took a few “digitals” and I just thought you might like to go along with a Realtor during a Caravan.

 

The (Top Row Right ) “view forever” is from a new listing on Meadow Mesa Drive and the Spanish-style home (Center Top Row) with the center fireplace is the home with that view forever; the view of Turner Lake (Bottom Row Left) is from a new listing on Alps Way; and the two interior shots of the dining room (Top Row Left)  and the stained glass doors/windows (Bottom Row Right) are from one of my absolute favorite Covenant homes.

 

And, yes, if you double-click on one of the photo thumbnails, they grow much larger!

 

Yes, I know it would be better if the photos of a single home were contiguous, but I am just learning this particular Blog methodology.

 

 

Snow Drives the San Diego Market

Yes, it is my opinion that Minneapolis drives San Diego real estate.

 

Each year a certain number of people reach snow saturation point in Minnesota, and on some day in February the husband comes into the house with snow shovel in hand and says, “Maude! That is the last damn snow I intend to shovel. Put the house on the market, we are moving to (Arizona)(Florida)(Texas)(San Diego).

 

The place John and Maude move to is determined by a lot of things – primarily money – but if the couple have sufficient savings or owned a business which they sold, they will move to San Diego.

 

There are many other traceable demographic movements that take place simultaneously, but the up-scale market in the three areas in which Jean and I sell (Rancho Bernardo)(North Poway) and (Hidden Meadows), are all strongly influenced by this mid-West snow market. When the people there cannot sell their homes or their businesses, our housing market suffers.

 

If I had a low-priced home in good condition that I wanted to sell, I would agree to list my home with a Realtor who agreed to advertise in two markets and I would agree to share the cost of the advertising: Temecula, because there are many people there who have good equity in their homes after 10 years of ownership and would trade that equity for halving their costly commute, and a community newspaper in an upscale Minneapolis sub-division.

August 29 MLS Update and Comments

Again, or should I say ‘still,” the activity is reasonable in the overall Zip Code (92026), but nothing in Hidden Meadows. Not even a mention.

 

Usually on Fridays, I run a list of all of the homes for sale by everyone in Hidden Meadows – but if I post it on the Blog the MLS will be all over me like a cheap suit – so if you want it I’ll have to send it to you via e-mail. Ask by e-mail and ye shall receive.

 

There is usually a short hiatus at this time of year as families get children ready school or college. Unfortunately, that period is followed by families not buying because they don’t want to move at Thanksgiving or Christmas – then, of course it is too cool to go house-hunting.

 

But the truth is that people who NEED homes are always in the market. Back in the old politically incorrect days we described Buyers as #1 Buyers, $5 Buyers and $100 Buyers.

 

A $1 Buyer is once who comes into an office and says, “My home in San Marcos is not on the market, and we have been working on it for 20 years to get it just right – BUT, if you can show us a home we like better we will buy it!” There is no chance!

 

A $5 Buyer is one who says, “Our home in Encinitas is on the market and we are getting serious offers – we should start looking seriously for a home.” This is a Buyer one would classify as a “serious prospect.”

 

All Realtors want a $100 Buyer! That is someone who says, “We sold our home in Michigan last month, and I am living in a motel room with spouse, three children and a dog. I NEED A HOUSE!” I would say so.

 

There are not a lot of $100 Buyers in the market today. The home in Michigan is equally difficult to sell.

 

San Diego depends greatly on people moving from Minneapolis, about whom more in due course.

August 28 MLS Update

Two price reductions, one on Sage Hill and one on Meadow Glen, each in the $500K range, and each price reduction was $20,000.

There were 10 homes in zip code 92026 that went into “Pending” within the past 24 hours – but NONE were in Hidden Meadows! This is an example of how “hidden” we actually are!

One home that went into Pending in our zip code was a custom home in the Circle R area that I knew would not last – it just came on the market last week, but it had a pool/guesthouse/view forever and a recent appraisal at $900,000 but was listed at a variable price of $775,000–$810,000. This is a clue of how to sell a home in this market.

This zip code also had three escrow closed listings in the SOLD category, but NONE in Hidden Meadows; four expired listings (NONE in Hidden Meadows).

Hidden Meadows has always been a great place to buy, and a great place to live but we are always a bad place to sell — and all of this because we are truly “hidden.” We simply do not have the traffic that other communities, or other parts of this zip code, benefit from.

In a “normal” market — in which we would have 25 instead of 66 listings — we would have 6-8 couples through an “Open House.”

Last November/December we would average ZERO couples through an Open House, and today, only two couples, and they are USUALLY looking for “bargains.”