South County real estate market conditions, as we enter into February seem to be warming up a bit for our fortuitous buyers. This is really their market. Inventory is high, prices are at an all time low, and interest rates are historically low. For inventory under $400K we are even seeing multiple offers again (especially on our Short Sale and Bank owned properties). Otay Ranch, Sunbow, Lomas Verdes and many areas of Eastlake are seeing prices unseen since prior to 2004.
The upper end markets of Rolling Hills Ranch, the Woods, and even parts of Rancho del Rey are still softening a bit. There are many factors that hamper the market in those areas. Stiffer mortgage restrictions on jumbo loans, state of the economy, and when the bulk of your move up market has lost their equity and/or their home to Short Sale or Foreclosure, the buyer pool is greatly diminished. We do, however, expect to see a healthy recovery in this market, it will just take more time.
Positive indicators is that activity is picking up in our area dramatically. Buyers are out there. First time homebuyers are increasing and will be a major contributor to our market in 2011. The South County can still boast fantastic amenities, outstanding schools, and great growth opportunities. That coupled with the inventory of fantastic homes and affordable prices, this is the destination of choice for many families, individuals and couples to settle down and call home.
Visit www.mcmillinrealty.com to find a home that suits your needs today. Anyone of their outstanding agents can help you!
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