Is It a Good Time For You to Trade-Up, San Diego?
17 Sep 2013

Is It a Good Time For You to Trade-Up, San Diego?

2013 has been proving to San Diego that it sure is good to be a Seller!  With foreclosure sales and short sales in rapid decline, the demand of trade-up buyers is rising as the home equity available to these prospective buyers is improving.

As FNC’s Foreclosure Market Report shows, foreclosure rates are approaching pre-crisis levels which is an indication of strengthening supply-side conditions. On the demand side, rapidly rising home prices and an expectation of continued recovery have stimulated housing turnover by prospective buyers.  These buyers do not only include investors and first-time buyers, but also trade-up buyers.  After seeing their home equity position improve and positive capital appreciate, current homeowners are ready to take advantage of their new found down payment and apply it towards their next bigger house.
FNC’s report shows that nationwide foreclosure price discounts, which compare a foreclosed home’s estimated market value to the price paid by investors or home buyers, have dropped to a 10-year low at about 8.1% in Q2 2013, down from 12.5% a year ago. At the height of the mortgage crisis in 2008 and 2009, foreclosed homes were typically sold at close to 25% below their estimated market value. In many fast-rising markets, such as Phoenix, Las Vegas, and here in California, investor activity and low foreclosure inventory drove foreclosure prices up, frequently resulting in a price premium relative to estimated market value. Other key points from FNC’s Foreclosure Market Report:
• Arizona, California, Nevada, and Oregon have seen the fastest declines in foreclosure rates in the ongoing recovery, down respectively from 30.7%, 33.4%, 44.9%, and 24.2% entering 2012 to 11.9%, 12.4%, 15.3%, and 7.2% by Q2 2013. • States with continued high foreclosure rates include Alabama, Illinois, Michigan, Ohio, Rhode Island, South Carolina, and Tennessee. Looking to for more detailed information on your specific neighborhood in Scripps Ranch, Del Mar, Carmel Valley, Carlsbad or other areas of San Diego?  Give us a call! 858-229-2078 We would be happy to provide you with more insight on your specific market!

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