August 11, Weekly Analysis

August 11, Weekly Analysis

Two new listings this past week in The Meadows, and they are displayed with yellow highlight on the list.

Only one Meadows home went into Pending: 28042 Glenmeade Way, a 3/3 of 2,159 s.f. which had been listed at $474,999.

No homes Closed Escrow this week in Hidden Meadows.

Our inventory is stable again this week, but again weighted heavily in favor of the large lot properties, and again we have no listings under $425,000 as the lower-priced properties have sold.

The activity on the large lot properties is high, but the accepted offers are sparse. Most of the potential Buyers express the opinion that the large lot properties do not include many bargains, and bargains are what the current crop of buyers is looking for.

The lenders are reporting that nationally the rate of foreclosures has increased every month over the past three months, but that the rate of foreclosures is still less than the same period last year. Nevertheless, the shadow inventory of foreclosures is very high. The lenders are at least releasing their foreclosures at a sufficiently slow pace as to keep the prices stable.

There are too many unknowns in the overall economy to feel good about the real estate market, which historically returns after the economy picks up. Gas prices, drought in the center of the nation, and the teetering European economy (which represents 25% of our exports) all mitigate against a rapid economic return, and ultimately against a rapid real estate recovery.

We in Hidden Meadows had a great sales Summer, at least below $500,000, and now activity in the above $500,000 market shows the potential for life as well. The market below $500,000 has seen multiple offers appear in some sectors of North County, as investors have been very active in that market, and cash sales are not uncommon.

The Executive and Luxury market has seen a few expensive properties sell, but nothing approaching the activity of the lower-priced properties. The owners of Executive and Luxury homes have seen nothing like the traffic seen by the smaller lot properties. In the upper level an Open House seldom brings two or three potential buyers a day, and even offers made are much lower than the asking prices.

But traffic is still good, and offers continue to be made in the Executive and Luxury homes as potential buyers seek bargains.

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