This August, the number of home sales dropped, while the median sale price increased in the North Country real estate market. This trend is more commonly seen in the winter months, and a rare occurrence in the summer months such as July and August. Home sales fell to 604 houses, down 24 percent from July and 34.3 percent from August 2009. Condos experienced a similar trend with sales down by 15 percent from July and 23.4 percent from August 2009. The market had hit comparable low in January of this year, and before that in 2007.
Despite the drastic drop in sales over the summer months, the median homes sales price increased. This boost can be attributed to the types of sales buyers gravitated towards. We saw more traditional sales and foreclosures than short sales, where sellers are able to price their home below what they owe on it. For this reason, the median sales price in North County increased by 1 percent in July and 5.7 percent from the same time last year. However, condominiums saw a decrease in the median price of 5.6 from last month, and 7 percent from 2009. Unfortunately, forecast for the next few months does not look like the prices for North County condos are likely to increase.
Buyers’ preference for traditional sales is due to the obvious frustrations of the short sale process. Short sale transactions are long and drawn out for months with negotiations and unpredictable lenders that do not guarantee approval. Meanwhile, bank-owned properties that don’t require a lot of repair are getting multiple offers in cash from buyers looking for a good deal. Traditional sales are attractive to buyers, because they know what to expect throughout the transaction. For this reason, sellers may be able to get 6-10 percent above market price.
Here is a look at local North County cities change in the average median price from August 2009.
Carlsbad 10.15%
Oceanside 12.16%
Carmel Valley 15.8%
Del Mar -11.6%
Encinitas -23.3%
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