November 22, 2024

San Diego foreclosuresAs I write this I've just seen a local San Diego neighborhood with average home resale values in our falling market. Suddenly, all three of the currently pending sales are 'short' sales. Two of the active homes are possible short sales as well. Whether these short sales go through, or the banks foreclose and  list the homes for 'fast' sales, the entire neighborhood values are negatively affected.

What happens then? All the homes in the neighborhood are suddenly devalued because a few homes sold for less than what they could have achieved without the 'rush to unload them/fire sale' mentality.

What if there are more short sales/foreclosures in this neighborhood? The value of a neighborhood can completely be decimated by a few homeowners who purchased beyond their means or refinanced their homes to 90% or more of the value just a few years back. Now the the foolish ,or in some cases naive behavior, of these homeowners will have a huge monetary affect on all the neighborhood.  Conservative homeowners who live within their means, don't take on risky loans and treat theirr home like a piggy bank are adversely affected by the actions of a few. [tags]foreclosure,San Diego real estate,real estate bubble,housing bubble,home foreclosures,San Diego home values[/tags] downtown San Diego condo slaes

3 thoughts on “San Diego neighborhood foreclosures & short sales have a huge impact on home resales!

  1. Sales in San Diego are down vs last year, there are signs the market is leveling off. If you are “thinking” about buying a home now may be the perfect time with rates still at historical lows, prices are down and supply up. . The average cummulative days a home stays on the market before it sells is now 102 (last year it was 49 days). I could overwhelm you with statistics, yet it all boils down to “It’s a Buyer’s Market”. San Diego laser vision

  2. Today’s market is beginning to resemble an old western movie – it’s high noon, buyers and sellers are squaring off for a shoot-out, and a tumbleweed rolls across the dusty street. Buyers are continuing to demand lower prices than what’s being offered. CA gold nuggets

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