Everyone is focusing on foreclosures in SoCal and while they are real and largely due to speculation and unqualified buyers looking at easy financing, they are not close to our historical highs and are not predicted to move to those levels. They are, nonetheless worrisome and a tragedy for some.
As shown above, foreclosure activity for all of Southern California during the past quarter approached 10,000 homes. By third quarter 2008, the level of foreclosures activity will approach 11,600 homes. The impact has been, and will continue to be, a contribution to the current over-hang in housing inventory and reduced home price support. Unlike market priced comparables, much of this added supply will be offered at below market pricing in order to move inventory quickly.
A brief view of current sales activities for the county
CCDC just reported that in October the 10,000 mark was surpassed in terms of new housing units completed in downtown San Diego since 2001. Sales in that zone were slightly ahead of 2006 through the first 8 months of 2007.
Here is a comparison of fundamental real estate indicators with other major metros:
Thanks to Forbes magazine, LA Times and DataQuick for this month’s data charts
If you found this issue to be even mildly interesting consider using the SDHomePros.com for any real estate needs you might have. We take service and prompt execution very seriously.
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