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As we enter the heart of the spring selling season for San Diego real estate (pardon the alliteration) the market continues to provide exciting and meaningful signs of real turning point after years of down trending prices. It’s only in hindsight that the bottom of any market can truly be identified, but I believe that in the next few months we’ll be able to look at the beginning of 2012 as the turning point for our local Carmel Valley real estate market. Why is this more than just an optimistic opinion? There are several indicators…
First, the emergence of cash-buying investors into the market is a great sign that the “smart money” is showing faith in the belief that the worst is behind us. We know first- hand from many of our investor clients that they are aggressively looking to purchase Carmel Valley and North County homes to hold as rentals, or to identify the “fix and flip” opportunities that exist. Second and most importantly, we are in a LOW inventory environment especially for well maintained and upgraded coastal properties. Carmel Valley currently has 143 active listings, which is down 30% from the same time last year – that is a HUGE change! Average sales prices too are down from a year ago but this due in large part to a sluggish high end and a weak ending to 2011. As investors jump back into the Carmel Valley real estate market the lower price points are solidified and this props up prices at higher levels. Finally, the distressed inventory (approximately 11% of the Carmel Valley homes) is being held in check and the flow of inventory hitting the market is measured. This supply is more than being absorbed by the strong buyer demand and shouldn’t impact prices overall.
With the market time for Carmel Valley homes standing at just over 2 months and low inventory there have been several listings that have generated multiple offers and secured sales prices above recent comps. While appraisals can still be a challenge the tide does appear to be changing from a declining to stable market. On a national level, Realtor.com reports the number of sales dropped 22% in the last month due to low inventory, while asking prices have increased 6.8% as demand from buyers increases too. A shortage of quality inventory makes for an excellent time for Carmel Valley home owners to consider selling their home. Buyers too can confidently make a move to take advantage of low interest rates along with prices that have bottomed out for Coastal North County real estate.
For specific sales and trend data for your neighborhood or to start your home search, contact the Dalzell Group, Carmel Valley Realtors since 1992 at (858) 755-7740.
Jim and his wife Jo, have lived in Carmel Valley since 1987 and first got into the real estate business in 1992 after a successful career in the construction industry in South Africa. Kevin Dalzell joined the Dalzell Group Real Estate team in 2002 after playing professional rugby in Europe (represented the U.S. in two Rugby World Cups) and is now living with his wife, Nina, in Solana Beach. Ryan Dalzell coordinates the team’s marketing program, and he joined the group in 2004 after working as a flight instructor. Ryan lives in Carmel Valley with his wife Julie and their 3 children. Amber Worsham recently joined the team as the new Marketing Manager & Transaction Coordinator. With over five years of experience in marketing real estate in Coastal North County, Amber provides us with extensive expertise in the print, internet and direct marketing aspects of the business.