Normal Market?

Follow the red line and you'll see the number of sales in San Diego County is trending lower. Our market has a seasonality, which you can see in this graph. The most sales are in the summer, the least in winter. Since 2006, the high summer mark is roughly equal to the low winter mark of the year before, a bearish trend.

These days, it takes an iron will to keep escorws together, and we are seeing 10 year veterans throwing in the towel. It's tough to get buyers and sellers together, and when we do, the lenders can't get a loan done. Our last 3 escrows have all closed weeks late, and there is nothing anyone can do about it. Without the loan, there is no transaction. Sometimes we have to sell a house two or three times to find a buyer that can actually qualify. This is not a normal market.

The good news is, I am a 20 year veteran! That means I've been through tough markets before, and I'll get though this one too. And not just get through, but come out even stronger. I'm not normal!

Did you know that many agents have given up? Their bodies show up but mentally they are someplace else. I know because I have to work with them on the other side of transactions! They are just not there! They don't push to make things happen, they don't make any effort, because they are resigned that the deal probably won't work anyway. This is not a normal market.

That means buyers are having a field day, right? Not if you can't get a loan you aren't. Our last two transactions fell apart because the buyers, who were pre-approved, were not qualified when it came down to the underwriter's desk. Why? Because the lenders can change the rules mid-stream if they want, and they are very skitterish right now. Even 20% down doesn't mean you're golden, because some lenders believe the market might fall 20% and so they are still taking a big risk on you. So good income, good down payment, and good credit doesn't mean you'll get the loan. This is not a normal market.

My advice? If you're looking to buy or sell real estate in San Diego, make sure you don't just get a normal agent, because this is not a normal market.