San Diego Homes

The Time to Sell Your Home is Right Now

Are you thinking of selling your home this year? You may want to list it right now to receive the most profit on your home. Some real estate analysts are predicting, by October 2011, distressed properties will make up the majority of the San Diego homes for sale. By the end of the year, the supply of San Diego homes for sale will be high, with distressed properties making up the majority of the market. (A distressed property is a property that is currently being foreclosed upon and the owner is pursuing a short sale or has been foreclosed upon and is owned by the bank. Usually these properties are sold as is. There’s no negotiation for for repairs that need to be made to the home.)

Industry analysts looked at all the factors that go into the real estate market, conventional sales, short sales and foreclosures and predicted anywhere from a 3% to a 14% decline in home sale prices this year. They are expecting the height of the price decline coming in the 4th quarter this year.

What will cause the price decline? We expect to see the supply of houses go up. Remember when the banks put foreclosures on hold, because of the robo-signing scandal? Well, those foreclosures that were delayed by faulty paperwork are going to start hitting the market by the end of the year. The banks have gotten the foreclosure documentation in order and are getting back to the business of foreclosing on homes. While the numbers of foreclosures in the last 6 months is at it’s lowest since the recession began, we are seeing an increase, month over month, in the numbers of foreclosures.

All this supply will bring down the average price of a home. Sellers with a conventional property can expect to make less in this market.  Buyers won’t pay top dollar for a home they can get cheaper from a bank. Buyers that are willing to pay top dollar for a home, that’s clean and in good condition, will have challenges getting the home to appraise for the full price. The purchase price of the distressed home will impact the comparable home prices in the neighborhood and, thus drive the median home price down.

Real estate industry analysts are predicting home prices will start to rise again in the last half of 2012. With prices expected to rise until at least 2015.

Right now, there is a 90 – 120 day “window of opportunity” to sell before we see the majority of the foreclosures hit the market. Waiting to sell until winter or the beginning of next year will probably guarantee you one thing, a lower selling price.

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