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September Market Update

The summer continues to show record number of sales, stimulated by the traditional busy summer season in real estate, the low prices and the first time home buyer tax credit.  Inventory remains low, with 11,347 properties listed for sale in the MLS, 8,575 single family residences and 2,651 condominiums and townhomes.  There are 2,439 bank owned properties for sale and 4,741 short sale listings.

There are a remarkable 10,430 properties in contingent status, meaning there are accepted offers on them, but contract contingencies, such as short sale approval, inspection or financing, have not been waived.  2,544 contingent sales are bank owned and 7,187 are short sales.

There are 3,606 pending sales.  These properties have waived contingencies and are awaiting close of escrow.  Of these 2,436 are bank owned and 547 are short sales.

3,966 sales closed in August.  Of these 2,795 were bank owned, 488 were short sales and 672 were regular resales.  70 percent of all sales were bank owned.  Short sales continue to close at a rate of around 10 percent.

The majority of sales remain under $200,000.  There were 1,566 sales $100,000 or less, 1,638 $200,000 or less and 465 under $300,000.  There were 293 sales over $300,000.

Investors and first time buyers are the primary purchasers.  According to the Review Journal today, using figures provided by MDADataQuick, a San Diego research firm, 58 percent of loans used to purchase homes are FHA, which requires only a 3.5% down payment and may only be used for owner occupied properties.  43 percent of buyers are using cash to purchase houses.  Sellers will often choose the cash offer over others which may require obtaining financing because of the speed and certainty of closing cash transacions.

If you are interested in taking advantage of the first time home buyer tax credit before it expires on December 1, contact us through

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