San Diego Real Estate Market is HOT ranking #3 in competitiveness!*
  • Those of us living here will not be surprised by this statistic! Redfin reports the top four most competitive markets were all in California!! Orange County, San Fransisco, San Diego and Los Angeles top the list. 
  • In San Diego (April 2013) 86.9% of purchase offers faced competition, up from 62.5% this same time last year. 39.4% of those offers were above asking price. Sellers Market anyone? 
  • As demand for move-up homes and high net worth investors look to purchase, cash offers are becoming more prominent. While the economy continues to improve, low-inventory levels combined with cash paying buyers will make the summer months of San Diego interesting. 
  • The market is improving with no signs of letting up as the summer months draw near are you thinking, "now is the perfect time to sell?" 
  • Activities are increasing day by day in the luxury real estate markets all over the nation. Those high-end buyers who have been waiting for the right time are making moves which will continue to drive Real Estate prices up. 

High End Buyers Create a Boom in San Diego Luxury Real Estate

  • The number of California homes that sold for a million dollars or more has moved to its highest level since 2007.
  • The number of transactions for more than five million rose to an all-time high.
  • Dataquick reports in 2012 7,791 of the million-dollar home buyers paid cash, a record number, up from 5,802 in 2011. Are you smelling what I'm stepping in? Seeing a Trend??
  • Southern California Communities with the most $1-million plus sales included Manhattan Beach, Newport Beach, La Jolla, Brentwood, Beverly Hills and Laguna Beach. 
  • Of those who used financing for their purchase in 2012, the median down payment was 25.9% of the purchase price. The lending institutions most willing to provide jumbo loans were Wells Fargo, Union Bank, and First Republic.**

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Tips for Buyers Purchasing Million Dollar Homes
As the days of purchasing little cottages for less than $1M are behind us these beach communities are turning the corner. Buyer demand, lower inventory and attractive housing prices change the game of Real Estate. 
  • Do your Research or Hire Team SchuCo to do it for you!
  • Be prepared: Whether paying cash or using financing, get pre-approved in advance, sellers may lean more towards an offer with 70% financing vs 80% financing. Don't be afraid to put your best foot forward on your first offer.
  • If you can pay cash do it! This doesn't mean you can't finance the property after its closed, especially with interest rate lows in the market. 
  • Be ready to divulge details about yourself! Some sellers require a letter from an accountant and a bank statement to show you are qualified to purchase their home. 
Sources
*** ILHM