I know that one month’s data doesn’t portray a trend, but isn’t it unusual that we have seen y-o-y sales declines for the past 6 months, and now San Diego’s February pendings are even with last February’s sales?
“However, the good news is that the January Pending sales of 2,456 indicate that February will be even with last February.” Realty Times
Paul Miller writes that February’s sales increased at the end of the month.
Does this signal the beginning of a spring bounce?
Again, I wonder why I haven’t seen a deluge of “sold” signs. I have seen only one sold sign since I’ve been eagerly looking for them in the last few months. Where are February’s pending sales?
Are condo builders and converters playing escrow games?
Here’s the scenario: condo seller has a bunch of units that won’t sell and is afraid that prices might start dropping – seller puts a few of those units into escrow (brother-in-law, neighbor’s dog, etc) at the dream price and hopes that the ‘pending’ sales put a floor beneath prices (“Well, Mr & Mrs Jones, we’ve got three of these units in escrow at $429K. You’d better secure your unit today …”).
Eventually the pending sales fall through and the units become available again. (And Mr & Mrs Jones sue the seller because he is selling units for $30K less than they paid just a few months ago.)
I saw a local condo converter put 8 units into escrow on the same day in late 2005. No sales for 4 months and then 8 units go into escrow on the same day – I know this can be explained but it makes me suspicious. Prices in this development continued to drop and units are still available today.
I agree with you, powayseller, I’m not seeing “sold” signs popping up (although condo sales aren’t as visible as single-family houses). I am seeing more “for sale” signs and more single-family properties being cleaned up in preparation for sale. How many sellers are planning to take advantage of the spring bounce? Will we see lots of new listings in the next few weeks?
I wouldn’t be surprised if these guys were manipulating the market like that. I know for a fact that they’re hurting bad financially. I have information to confirm that too. A lot are seeking private investors and are selling off units of their companies just to try to stay a float. I feel sorry for those who are committing capital to these “dogs”. They won’t be around much longer.
I was wondering about the escrow process…..the house we were renting last year has been in escrow since before Christmas. That’s how the realtor has it listed on his website. If it had sold, wouldn’t he have changed his website by now? There are people living there, but we think it’s being rented again.
Spring ounce or no spring bounce, we won’t be buying a house here in San Diego. The houses we see with price tags of 500K or more just aren’t worth it (to us). We plan on moving by the end of the year, probably to my husband’s home state of North Carolina. I don’t really want to live there, but I am SO tired of renting.
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