[quote=SK in CV]I left Carmel Valley in June 2011.
I have no issue with anything you said about the past.
I was just taking issue with the best areas being the least interest rate sensitive. With the exception of the >$1.5 million areas, I don’t think that’s true, if by the best, you mean the most expensive. I’m not sure there is much in the way of “best areas” in central SD, south county or east county. Not none, but not much.
Out of curiosity, how do you know most of the sales are all cash? That really doesn’t sound like owner occupied. It sounds like investors.[/quote]
In the lower tier, it has been investors (flippers) and boomers residing in AZ buying second homes. Believe it or not, zonies have bought up second homes in the $250K to $325K range in those dreaded “working class” areas such as west Chula Vista and Lemon Grove :=]
A couple of these zonies I am familiar with are native San Diegans who bought cosmetic fixers on the same street a relative lived on.
You must know that there are a LOT of areas in Central SD (inclusive of Pt Loma) but also in East and South SD County which are not only prestigious but have 1/2 to 2 AC lots.
A lot of these sales are on cash terms. I go to the recorder’s office in Chula Vista about once a month with a listing of closed sales to check out the terms of trust deeds filed. A good portion of the sales don’t have any trust deeds but I don’t know the exact percentage. In another portion of the TD’s I reviewed, the mortgages taken out were <=20% LTV.
I haven't tried to figure out the percentage of all-cash purchases yet but will endeavor to do this by zip code.
My own area would be considered mid-lower tier and there have been at least a half-dozen all cash closings around here (out of about 80 homes) since November. Two were bought by flippers who have already turned them again (I haven't checked the new terms). It is a new day.
It is almost all organic "traditional" sales now in the areas I follow. I don't understand how wishful buyers out there think they're going to "steal a deal." Very few sellers are "distressed" anymore. Even REO lenders appear to be spending up to about $17K, if necessary, to fix up mid-high tier homes in their inventory before marketing them.
