Short Sales and Foreclosures Still Major Factor in Southern California Homes Sales

November real estate data reports are starting to trickle in and they are an indication of the continued affect of foreclosures and short sales in the resale housing market.  Dataquick consultants have reported that residential properties sold in November that had been foreclosed on in the prior 12 months made up 39.1% of all southland resales.  Although that is a seemingling staggering number, that’s the lowest its been since May 2008. We hit an industry high foreclosure percentage of 56.7% of all resales this past February.

Another interesting statistic to examine is who is buying in this market….  reports are showing that absentee buyers make up about 19% of the sales and cash buyers, purchases with no corresponding purchase loan, make up about 24% of the sales.  This is partly due to lending limitations in a tightened mortgage industry. For those purchasing a San Diego Condo in the local market, most lenders are requiring a 20% down payment on condos with conventional lending.  Underwriting guidelines are continuing to be strict on homeowner’s association health and owner occupancy.  And the number of FHA approved condo complexes is dwindling.  So definitely know your financing limitations before venturing out and finding that perfect property.

Tara Steinke

Agent / Appraiser

San Diego County

619-384-6014

SDRealtor.Tara@gmail.com