We hope this on-going San Diego Housing Predictions Series sparks connections between realtors in our community and helps you provide your buyers and sellers with valuable San Diego housing market insights.
Question: What do you think the San Diego area housing market will look like in through the remainder of 2013?
Answer: In 2013, it’s clear that the conditions for the housing market are healthier than the environment of the mid 2000s, before the market started deteriorating. More than half of all home-sellers in 2012 were selling for the first time, which was up from less than half in 2011, and up from 15% in 2007. It’s likely then, that those who bought homes when prices were up a few years ago are now selling. This increasing number of sellers and reduced faith in the market suggests that buyers are having an easier time, especially when the common financial difficulties of sellers are taken into account, as well as buyers reporting an increased faith in the market. To state it succinctly, sellers think that prices will not go up, whereas buyers think the opposite. Unfortunately, low inventory continues to be a problem in San Diego. This has resulted in bidding wars, which often escalate quickly, and have given control over pricing to sellers.
Question: What are the latest real estate technologies or technology trends?
Answer: The latest trends in technology are moving real estate into a more social and mobile space. Twitter’s integration of “Cards,” which serve as a method of expanding a typical tweet with multimedia enhancements, would allow real estate agents to publish a concise introduction to a listing that includes photos and essential data. The increasingly user-friendly nature of smart phones makes information more readily available, which means that real-estate listings and profiles of agents are available at any time. Unfortunately, the effect of these changes has resulted in many real-estate agents being unable to adapt to maintaining a social-media presence or to adapt incorrectly by incorporating poorly designed websites and relating to their clients on a superficial level.
Question: Can you talk a little about the foreclosure inventories and/or how you’re helping people avoid foreclosure?
Answer: Foreclosures are currently about 46% lower than april of last year. San Diego has seen yearly drops in mortgage defaults for the past 10 months. Foreclosures has been halved from a year ago, and have seen annual drops for the past 31 months. So, while they’re less common than before, Orellana Real Estate seeks to ensure that our clients don’t qualify for a loan modification. If necessary, Orellana Real Estate is willing to seek out a suitable loan modification. Furthermore, if a loan modification is not possible, Orellana Real Estate will pursue a short-sale in order to save our client’s credit.
Question: What is the current market like for first time buyers?
Answer: For first time buyers, San Diego might seem a bit daunting in terms of cost. The entry level price is currently around $350,500 and as a result, the average monthly payment ends up being about $1,680. This results in a minimum qualifying income of about $50,300. San Diego is a little on the expensive side, but its location and gorgeous scenery more than make up for it.
About Orellana Real Estate: Mirna Orellana got her start in real estate in 1999, and since then has amassed a considerable amount of experience, starting in Los Angeles and moving to San Diego in 2001. She founded Orellana Real Estate in 2011, and since then has served a considerable amount of clients throughout San Diego county. While Orellana Real Estate has not grown in numbers of employees, it has grown in the amount of business it conducts, with the help of New Venture Escrow and Lawyer’s Title. Orellana Real Estate seeks to serve buyers and sellers, as well as investors looking to buy, renovate, and sell for profit, as Orellana Real Estate owns a renovation company which is equipped to serve those needs. Our company is capable of providing necessary services to buyers, sellers, and investors at an affordable price with exceptional service.
To participate in our Realtor Interview Series, email Shelby.