Though we hear rosy real estate reports, the San Diego real estate recovery has proved to be an uneven one, according to a report in this morning’s U-T San Diego.
As might be expected, North coastal San Diego County fared the best with Carmel Valley just 3.2% off its former peak price. This was followed by Penasquitos at -4.3%, Hillcrest and Mission Hills -6.9%, Encinitas at -7.5%, and Mission Beach and Pacific Beach -9.3%.
Laggards appear mostly in South County with Logan Heights a lofty -49.6 % off its highs, followed by Mission Valley-48.1%, National City -46.4%, Chula Vista, Eastlalke and Otay Ranch -45.1% and Paradise Hills -44.6%.
We at San Diego Previews are watching the San Diego real estate market very closely and also look at national trends to see how they might affect us.
Anecdotally, we are seeing properties stay on the market just a little bit longer, and the number of multiple offers beginning to dwindle. Buyer makes an offer on the property, and seller counters back full price. Buyer walks–perhaps in search of a better buy. This is NOT what we were seeing last spring
Additionaly, have you checked home builder stock prices lately? Hovnanian (HOV), DR Horton (DHI), Pulte Group (PHM) and KB Homes (KBH–see chart at right)) are all off their springtime highs.
And interest rates are rising.
I have no intent of being the bearer of gloom and doom–and I don’t necessarily believe we are heading in that direction. But beware agents and folks who are waving flags of optimism and encouraging their sellers to hold fast to elevated real estate prices. And telling buyers that prices are headed for the moon.
It just might be that we are approaching a more normal market, where real estate prices are negotiated and buyers offers are more appreciated by realistic sellers.