Rising home sales and halted short sales in San Diego
People looking at homes for sale in San Diego have a wealth of positive and negative news to weigh against one another. When contemplating engaging in the San Diego real estate market, there are a few things that might be useful to know.
Rising home sales
A recent article in The Street cited industry reports that indicate a rise of 13 percent in the median home price in San Diego, putting it at $400,000. The source also detailed that smaller homes - particularly townhouses and condos - have really seen a rise. A recent industry report showed that prices for these properties rose 19 percent in the third quarter of 2012 over the same period last year. In addition, single-family home sales increased by 10 percent on a month-to-month basis and increased by 34 percent in October when compared with October 2011.
Problems for short sales
Recent news has indicated that short sales have seen a significant rise in San Diego, and based on information from real estate analytics firm DataQuick, short sales make up an estimated 29 percent of all home resales in San Diego County.
However, according to a recent report in the San Diego Union-Tribune, an increasing number of short sales are being delayed or stopped outright.
"A growing number of short sellers in San Diego County are seeing their deals suddenly fall apart and cash bonuses disappear because the companies that accept and manage borrowers' mortgage payments every month - like Citi, Chase and mainly Bank of America - are selling off servicing rights to those loans to smaller companies for financial reasons," Lily Leung stated in the San Diego Union-Tribune.
The source revealed that servicing transfers or releases aren't exactly new, though they have been occurring less frequently in recent years. The spike in servicing transfers is not necessarily surprising, however, as market conditions make servicing transfers potentially lucrative for both big-name lenders and the smaller firms that buy the rights.
While the bank parties participating in service transfers may be seeing substantial fiscal gains, that is not the case for other involved. Homebuyers, home sellers and agents who are working toward a short sale are all reportedly observing losses in the form of time, effort and money.