First Time Buyers Still Leading San Diego Foreclosures Market
Category: San Diego Real Estate
Published: Tuesday, June 02, 2009
San Diego County foreclosures have been selling at record paces the past few months, dropping the inventory of available homes to just under two months. That means that if no new homes enter the market, the current inventory of for sale housing will evaporate in two months, causing prices to climb rapidly as sellers see they are in control. In some markets we are already seeing price increases, as properties receive multiple offers, investment buyers are coming in with hard, cold cash and the first time home buyer is reeling in a market they are unfamiliar with.
Despite these trends, first time home buyers are still leading the San Diego foreclosures market, in part because record low pricing has created home ownership possibilities for more and more buyers previously shut out of the market by escalating home prices and high interest rates. Today's San Diego real estate market however is perfect for the first time home buyer with prices on San Diego bank homes down 24.2% in the central county communities, down 32.4% in the beautiful east county communities populated by El Cajon foreclosures, Lemon Grove foreclosures and Lakeside bank homes, and down 39% on coastal Oceanside foreclosures and Carlsbad foreclosures.
San Diego Foreclosures Right for FHA Loans
A year ago 80% of buyers were using conventional loans. Today buyers are using conventional loans only 44% of the time. Cash buyers account for 25% of current sales and FHA/VA buyers represent over 35% of recent sales, indicating first time buyers are quickly entering the marketplace. With lower down payment requirements, FHA/VA loans are favorites of first time homebuyers. Couple these low down payments with the current low pricing on San Diego bank homes and first time home buyers have newfound buying power they are putting to good use.
Of the homes sold in June over 36% of them were San Diego County bank owned homes, and there are currently over 7,000 homes pending in escrow. An additional 3,600 homes are waiting on lender approval for short sales or other contract terms for a total of over 10,000 homes currently in sale pipeline. Unless a large number of new homes enter the market soon, buyers will be looking at higher prices in the next few months.
If you have been waiting for the right time to buy one of the many San Diego County foreclosures on the market, that time is now! First time home buyers particularly can benefit from this historic real estate market by not having to wait for their existing home to sell. With low interest rates on FHA/VA financing, first time home buyers can often close escrow on beautiful San Diego bank owned homes with only a few thousand dollars, and with quality long term loans too, not those risky subprime mortgages that were so prevalent a few years ago.
Don't miss your opportunity. Oak Tree Realty Group San Diego specializes in San Diego foreclosures and San Diego County bank homes in every community. For information on all the finest San Diego foreclosures contact Oak Tree Realty Group San Diego at 1-800-516-7791 for a custom showing.
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