Compliments of
miguel nunez
SAN DIEGO COUNTY
Market Overview a monthly real estate report | August 2010
Home Sales Rebound As More California Communities
Report Rising Sales Volume & Prices
The dramatic price declines of only a few
years ago are quickly rebounding as more
communities in California report rising sales
volume and prices for both May and June.
Housing blooms
According to the California Association of
Realtors® (CAR), as of May 2010 the median
home price in California is $324,430. Home
prices statewide have recovered 32% from the
trough set in February 2009, when the median
home price was $245,230. CAR also found
that housing sales volume increased 1.2% in
May 2010, while the median price of a home
rose 23.2% compared with the same period a
year ago. That’s the largest increase on record
for May. Below is a sampling among Southern
California communities:
Ventura: +22.5%, from April 2009 $156,840,
to $194,960.
San Diego: +19.8%, from March 2009
$326,830, to $391,410
Orange County: +19.5%, from January 2009
$423,100, to $505,750
Los Angeles: +17.4%, from March 2009
$295,100, to $346,350
Home buyers haven’t missed their best chance
to buy, however. Many communities are still
under their peak prices compared to their May
2010 median home prices.
Southwest Riverside County: -53%, from
January 2007, $415,160
Ventura: -38%, from August 2006, $710,910
San Diego: -37.1%, from May 2006,
$622,380
Orange County: -32%, from April 2007,
$747,260
858-481-1029 | miguel@nunezrealtors.com
Los Angeles: -42.8%, from August 2007 -
$605,300
California has reported double-digit gains in
the median price for five months in a row,
putting supplies in high demand. The state has
only 4.6 months of inventory on hand, despite
more sellers putting their homes on the market
to take advantage of frenzied buyer activity.
Sales in May 2010 increased 14.1% compared
with April, as home buyers scooped up near
record-low mortgage interest rates that averaged
4.79% for a benchmark 30-year, fixed-rate
loan. A year earlier, the same loan was 5.29%.
Mortgage rates at historical lows
Mortgage rates fell even further in June,
averaging 4.58%, which held steadily through
mid-July. Low interest rates coupled with
unprecedented affordability and the California
home buyer tax credit is helping continue the
momentum of sales.
But it’s not all about money. Southern California
also offers terrific places to live and work with
a high quality of life. For example, two Orange
County communities made CNNMoney’s Top
100 Best Places to Live. Irvine came in ranked
at #22, and equestrian and golf paradise Yorba
Linda was chosen as #38.
MDA DataQuick says the median price
for all new and resale single-family homes,
condominiums and townhomes in the
Southland was $300,000 in June 2010. With
a 13.2% increase over the previous year, that’s
the seventh consecutive month of year-over-
year increases.
Statewide median home prices were down 2.9%
to $270,000 in June, from May’s $278,000,
and sales volume was up 7.3% for the
same period.
DRE# 01220521
www.nunezrealtors.com
One reason why home sellers may be getting
better prices is attrition of foreclosed homes
from inventories. DataQuick says of existing
homes sold in June, 34.7% were distressed
properties. That’s down from 35.4% in May
and down 45.6% from June 2009. The numbers
show a great improvement from February
2009, when distressed homes were 58.5% of
homes sold.
But despite higher prices paid for homes, the
typical mortgage payment is $1,125, 57.8%
below the peak in June 2006.
Southern California’s housing sales volume
is 13% higher than it was a year ago in June
2009, says DataQuick. A total of 23,871 new
and resale homes were sold in Los Angeles,
Riverside, San Diego, Ventura, San Bernardino
and Orange counties, up 7.2% from 22,270 in
May, and 2.6% higher than June 2009 when
23,262 homes were sold.
The mortgage picture
The mortgage market is changing, making
things both easier and more difficult for home
buyers. Since August 2007, adjustable rate
(ARM) and jumbo mortgages have been more
difficult to get, but new figures suggest that
higher-end home buyers could see some relief.
DataQuick says 43.9% of all “Southland”
purchase mortgages since 2000 have been
ARMs, and jumbo loans were 40% of the
market. In June, only 6.6% of loans were
ARMs, but jumbo mortgages above $417,000
were 17.3% of June loans, up from 14.9% in
June 2009, and up 17.2% in May 2010.
Fannie and Freddie are also auditing new loans
being presented to them to make sure they are
in compliance. And that’s why underwriting is
getting more difficult. Lenders must be certain
that the loan meets the standards required by
the secondary market buyer, so we won’t have
a repeat of the housing bubble and bust of conventional loan and plan to stay several With over 3,400 sales associates in
the last decade. years, consider a fixed-rate mortgage. 58 offices across Southern California and
Be prepared to share original W-2s from at Advice for home buyers: Now is a great the Central Coast, Prudential California
least two years, as well as bank statements time to apply for a loan, but be prepared Realty is the name to trust when buying
going back several months. The lender for closing to take longer than in the or selling a home. Our agents close more
may also request to see the tax return for past. Banks are overwhelmed with last-
than $12 billion in sales volume and well
the previous two years, to make certain the minute tax credit borrowers that must close
W-2 matches the W-2 on the return. If before the mandated deadline, as well as over 16,000 transactions each year. We
you’re self-employed, you will be required with complying with stricter underwriting also provide every aspect of domestic and
to supply even more data, none of which standards. Save time by being prepared with international relocation to corporations
were a requirement three years ago. all the paperwork your lender requires and
around the world. As one of the top five
promptly reply to any new or request for
The new requirements may seem onerous, clarification on documents. Do not make brokerages in the nation and the largest
but it’s really a return to the cautious and major purchases or take any action that affiliate in the Prudential Real Estate
conservative lending practices of previous could cause your credit scores to change international network, we have the
generations. Ultimately, lenders want to during the escrow period.
know that not only can you pay for your resources and connections to protect your
home, but that you’ll continue to be able to Advice for sellers: Before you price your interests and make sure your experience
afford it in tough times. The way to ensure home, consider the amount of inventory is a successful one.
that is to buy within conservative ratios, available in your price range. For example,
such as FHA government guaranteed loans homes priced $1 million and above have Prudential California Realty is proud to
that require the borrower to spend no more 10.1 months’ supply on hand, while homes be a member of HomeServices of America
than 28% of gross income or 36% of gross under $300,000 have 3.1 months’ supply. Inc., a Berkshire Hathaway affiliate.
income plus debt on housing. If you can’t afford to wait a few months to
sell your home, you may want to consider For more information, visit
What can you do? The simple answer is lowering your price to stimulate offers.
to buy within your means. If you want a www.prudentialcal.com.

SAN DIEGO COUNTY

A heated seller’s market is still evident in San Diego County homes priced under $1 million, but as prices
approach $3 million, the market reverses to favor buyers. Upscale and unique homes aren’t expected to sell at
the same pace as more affordable homes, so a year’s supply or more isn’t unusual in a multimillion-dollar price
range. But supplies of several years’ worth are considered stagnant. Inventory levels are a fraction higher at
every price point in June than they were in May.

*A balanced market is widely accepted as having six months of inventory on hand with market conditions favorable to both buyers and sellers. A buyer’s market
is characterized by conditions such as high inventories, falling prices, concessions by sellers, and incentives among other indicators. A seller’s market has low
inventories of homes for sale, escalating prices, and keen competition between buyers, including multiple offers.
Detached homes stand alone and share no common walls with any other neighboring home. Attached homes share at least one common wall with another
home. The type of home ownership is determined by whether it is a condominium, townhome, duplex, co-operative or other.

Listings Sold by Calendar Quarter

All residential properties in SANDICOR MLS
9 quarters List Price Range (Less than $1 million) through June 30, 2010
All Properties - Listings Sold by Calendar Quarter
9 Quarters through June 30, 2010
Average Sale Price (Thousands) Homes Sold

$450 15,000
Avg Sale Price Listings Sold Units
$400 Rising prices continued into Q2, up 11% over prior year.
$350

$300 9,193 10,000

9,082 8,900 8,895
8,413 8,271
$250 7,399

$200 7,187 7,089

$150
$298 $337 $351 5,000
$388 $358 $320 $316 $336 $340
$100

$50
1-year avg. price trend: Up 11 % 1-year sales trend: Down 2.1 %
2-year avg. price trend: Down 9.6 % 2-year sales trend: Up 20.2 %

$0 0
2008/2 2008/3 2008/4 2009/1 2009/2 2009/3 2009/4 2010/1 2010/2

Based on data supplied by SANDICOR Multiple Listing Service and its member Associations of REALTORS, who are not responsible for its accuracy.
Analysis dates are April 1, 2008 through June 30, 2010. Does not reflect all activity in the market place. Copyright © 2010, Real Data Strategies, Inc. All rights reserved.
 Inventory in Months’ Supply – July 2, 2010
Detached properties in SANDICOR MLS

Detached Properties - Inventory in Months

Under $300K 1.9

As one of the healthiest detached home markets in
$300K - $399K 2.5
Southern California, homes under $400K are selling as
$400K - $499K 3.5
fast as they can close. The seller’s market continues up to
$500K - $599K 4.0 $900K, where buyers grow more reluctant.
$600K - $699K 4.4
$700K - $799K 5.7
$800K - $899K 6.0
$900K and over 12.9

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0

Inventory in Months’ Supply – July 2, 2010
Attached properties in SANDICOR MLS
Copyright © 2010, Real Data Strategies, Inc. All rights reserved. Use is by license agreement only.

Attached Properties - Inventory in Months

Under $300K 2.5

Attached homes are selling nearly as well in San Diego
$300K - $399K 3.5
County as detached homes. A healthy seller’s market
$400K - $499K 4.5 continues up to homes priced $600K. Beyond that price,
$500K - $599K 6.2 inventories start to build.
$600K - $699K 7.3
$700K - $799K 10.4
$800K - $899K 9.5
$900K and over 19.2

0.0 Pricing
5.0 Reality10.0
– July 2, 2010
15.0 20.0 25.0
List prices per square foot by MLS status
Detached properties in SANDICOR MLS
Copyright © 2010, Real Data Strategies, Inc. All rights reserved. Use is by license agreement only.

Detached Properties - Pricing Reality for Sellers, per square foot

Sellers should carefully consider current buyer

The gap between detached home active listings’ price

demand when pricing their home for sale.
When list prices per square foot of Backup
and Pending status properties are below that
ACTIVE $395 per square foot and that of solds further underscores the
of Active properties, sellers should ask for
pricing counsel from their Agent.

greater sales volume in the affordable ranges.

PENDING $245

SOLD $250

$0 $100Reality$200
Pricing $300
– July 2, 2010 $400 $500
List prices per square foot by MLS status
Attached properties in SANDICOR MLS
Copyright © 2010, Real Data Strategies, Inc. All rights reserved. Use is by license agreement only.

Attached Properties - Pricing Reality for Sellers, per square foot

Sellers should carefully consider current buyer

Attached home listing prices per square foot are also

demand when pricing their home for sale.
When list prices per square foot of Backup
and Pending status properties are below that
ACTIVE $376
much greater than that of solds. Lower pending prices
of Active properties, sellers should ask for
pricing counsel from their Agent.

suggest buyers may have some bargaining strength.

PENDING $230

SOLD $236

$0 $100 $200 $300 $400 $500

Copyright © 2010, Real Data Strategies, Inc. All rights reserved. Use is by license agreement only.
 Monthly Listings Taken and Absorbed
Detached properties in SANDICOR MLS
12 months through June, 2010

Detached Properties - Monthly Listings Taken and Absorbed

12 Months through June 2010
4,000 3,000
3,604
New Listings Listings Absorbed
3,342
3,454 New detached home listings have outpaced listing
3,259
absorptions every month for over a year. Sellers should
3,000
2,742
2,607 2,000 take note that the gap is widening as they price their
2,240 2,154 2,181 2,247
homes for sale.
2,000 1,876
1,695

1,000
1,000

0 0
2009/07 2009/08 2009/09 2009/10 2009/11 2009/12 2010/01 2010/02 2010/03 2010/04 2010/05 2010/06

New Listings Monthly

2240 Listings
2154 2181 Taken
2247 1876and Absorbed
1695 2607 2742 3342 3454 3259 3604
Listings Absorbed Attached
2149 2104properties
2189 in SANDICOR
2099 1693 1561 MLS1993
1756 2364 2577 1982 2230

12 months through June, 2010

Attached Properties - Monthly Listings Taken and Absorbed

12 Months through June 2010
1,800 1,500
New Listings Listings Absorbed

1,500 1,439 1,445 Attached home sales volume is struggling to keep pace
1,361 1,200
1,263
1,308
with new listings being added to the market.
1,200 1,161
1,035 1,009 900
990 978 883
900
810
600
600

300
300

0 0
2009/07 2009/08 2009/09 2009/10 2009/11 2009/12 2010/01 2010/02 2010/03 2010/04 2010/05 2010/06

New Listings 1035 990 1009 978 883 810 1161 1263 1439 1445 1308 1361
Listings Absorbed 1058 930 989 912 801 767 756 855 1044 1098 892 917
Listings Sold by Calendar Quarter
Detached properties in SANDICOR MLS
9 quarters through June 30, 2010
Detached Properties - Listings Sold by Calendar Quarter
9 Quarters through June 30, 2010
Average Sale Price (Thousands) Homes Sold

$600 9,000
Avg Sale Price Listings Sold Units

$500
With prices rising 14.5% in the year between Q2 2009
6,700
and Q2 2010, sales volume is lightly tapping the brakes.
6,594 6,476
6,352
5,927 5,705
$400
5,360 6,000

5,193
$300 5,019

$551 $498 $439 $393 $424 $449 $462 $468 $486

$200 3,000

$100
1-year avg. price trend: Up 14.5 % 1-year sales trend: Down 1.8 %
2-year avg. price trend: Down 11.9 % 2-year sales trend: Up 20.8 %

$0 0
2008/2 2008/3 2008/4 2009/1 2009/2 2009/3 2009/4 2010/1 2010/2
Listings Sold by Calendar Quarter
Attached properties in SANDICOR MLS
9 quarters through June
Based on 30,by2010
data supplied SANDICOR Multiple Listing Service and its member Associations of REALTORS, who are not responsible for its accuracy.

Attached Properties - Listings Sold by Calendar Quarter

Analysis dates are April 1, 2008 through June 30, 2010. Does not reflect all activity in the market place. Copyright © 2010, Real Data Strategies, Inc. All rights reserved.

9 Quarters through June 30, 2010

Average Sale Price (Thousands) Homes Sold

$400 4,000
Avg Sale Price Listings Sold Units
Attached home prices rose 5.6% from a much deeper
2,993
$300 2,891 2,840
2,888 2,941 2,872 3,000 floor, and still represent a good value, which may explain
2,589 why sales volume hasn’t retreated.
2,227 2,381
$200 2,000

$344 $311 $258 $229 $241 $252 $263 $242 $255

$100 1,000

1-year avg. price trend: Up 5.6 % 1-year sales trend: Up 1.1 %

2-year avg. price trend: Down 25.9 % 2-year sales trend: Up 10.9 %

$0 0
2008/2 2008/3 2008/4 2009/1 2009/2 2009/3 2009/4 2010/1 2010/2

Based on data supplied by SANDICOR Multiple Listing Service and its member Associations of REALTORS, who are not responsible for its accuracy.
Analysis dates are April 1, 2008 through June 30, 2010. Does not reflect all activity in the market place. Copyright © 2010, Real Data Strategies, Inc. All rights reserved.

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