Jason P. Bernabei, TriCastle Realty
DEL MAR, November 21 2011 -- Goooooddd Monday morning San Diego!!! I won’t bore you today with chit-chat about the weather, or remind you of the slip-sliding-away play-off prospects of a certain local football squad. Let’s just jump right into the madness that is the marketplace and get you up to speed as to how it affects housing and lending.
DEL MAR, November 21 2011 -- Goooooddd Monday morning San Diego!!! I won’t bore you today with chit-chat about the weather, or remind you of the slip-sliding-away play-off prospects of a certain local football squad. Let’s just jump right into the madness that is the marketplace and get you up to speed as to how it affects housing and lending.
Some positive things happening here on the home-front, if only baby steps in the right direction. The good news is that a position can be made that things have not worsened overall nationally over the past twelve months when assessing certain market data. While the housing market still remains “soft,” as has been the case for almost a half decade now (to put it mildly), there are some numbers that suggest optimism, comparative to the previous twelve month cycle. Existing home sales have bumped up in one year’s time to the tune of almost 14% nationally; likely evidence that many investment-minded buyers who had long-waited on the sidelines, finally decided to make their move and buy a home or two. In light of a market that has seen more stability over the preceding twelve month cycle when compared to the first 3 quarters of the “doom and gloom era” (2007-present) of home-ownership, these investors have helped to further stabilize the market, and are all but certain to reap the rewards down the line(just how many years down the line is anyone’s guess) for having bought low in a down market. Having said that, the soft market is evidenced when considering the average sales price in that same one-year cycle. According to the National Association of Realtors (NAR) that number fell nationally from slightly less than $171,000 one year ago, to around $162,500 (end of October).
On the other side of the pond, the continuing economic calamity that is embodied by Greece, Italy, France, and ultimately the overall questions of the solvency of the EU and the Euro-dollar continues to shake up the bond market. Rates are not reliable as this global economic crisis continues to unfold. So while we can point to the fact that jobless numbers also improved a bit (ever so slightly, yet again) here stateside, and also to some of the aforementioned positive numbers overall, we can now on some level point a big fat American finger at the Euros, and say “What about you chaps?” In any event, the U.S. and global economy remains gloomy, and any outlook of an overall rebound in the coming weeks is wishful-thinking at best.
Give me, Jason Bernabei, a ring today at jasonb@tricastle.com, and check me out here each and every Monday at www.tricastle.com for more, and tune into “The Realty Insiders” on the tube this January to see myself, Mike, and Nick flip SD.
–Jay’s Outlook: Stormy
