The first six months of 2012 saw a drop in foreclosures for San Diego according to San Diego Source Daily Transcript (July 26, 21012). Foreclosure activity for our area decreased 10.84 % from prior six months and 1.84% from the first six months of 2011, according to RealtyTrac’s Midyear 2012 Market Report.
As a result of a continued lack of inventory, and consequently low pending home sales, upward pressure is being put on existing REO inventory and “normal” sales. According to the California Association of Realtors, the median price of REO properties had an 11 % year-over-year gain in June. Here in San Diego, homes priced below the conforming loan amount of $417K continue to see multiple offers and a surprising amount of “all cash” offers make it difficult for VA and FHA borrowers to compete. Discouraged and eager to get into the housing market, many of my FHA and VA borrowers elect to up bid the price to give them the competitive edge.
The following statistics are taken directly from the California Association of Realtors website, www.car.org and provide some interesting light on our diverse and complex marketplace.
Distressed housing market data:
• The share of equity sales – or non-distressed property sales – compared with total sales grew further in June. The share of equity sales rose to 58 percent in June, up from a revised 56 percent in May. Equity sales made up 50.5 percent of all sales in June 2011.
• The share of REO sales statewide was significantly lower from a year ago, while the share of short sales was up slightly. The combined share of all distressed property sales fell to 42 percent in June, down from May’s 44 percent and from 49.5 percent in June 2011.
• The share of short sales edged up in June to 21.4 percent, up from 21.1 percent in May and from 20 percent a year ago.
• Of the distressed properties, the share of REO sales continued to decline in June to 20.2 percent, down from 22.6 percent in May and 29.2 percent in June 2011.
• The available supply of REOs for sale tightened slightly in June, with the Unsold Inventory Index declining from a 1.5-month supply in May 2012 to 1.4 months in June 2012. The June Unsold Inventory Index for equity sales stood at 3.7 months and was 5.3 months for short sales.
Tami McCraw
