San Diego Real Estate activity is picking up the pace!!!

The San diego Housing Market is finally starting to show signs of improvement. Offers that we wrote for clients in October are finally coming our of the short sale approval process and are headed for escrow. Situations with Lenders not accepting Home Owner Association due to the high % of deliquent HOA fees is clearing up. Situations with credit rating explainations are solidifing. Buyers are finally understanding that the combination of tremendous interest rates, Federal and State buyer Tax incentives and reduces prices have made for the perfect buying enviroment. Unfortunately for most entry level buyers they are facing mulitple offers on most properties. The multiple offers are driving up the prices and the frustration is beginning to grow on the buyers.

Resmedia wrote this article which describes the situation nationwide:
Pending home sales rose in February 2010, potentially signaling a second surge of home sales in response to the home buyer tax credit, according to the National Association of Realtors.

The Pending Home Sales Index (PHSI), a forward-looking indicator based on contracts signed in February, rose 8.2% to 97.6 from a downwardly revised 90.2 in January, and remains 17.3% above February 2009 when it was 83.2. The data reflects contracts and not closings, which usually occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said the improvement is another hopeful sign. “The rise in buyer contact activity may signal the early stages of a second surge of home sales this spring. The healthy gain hints home prices are continuing to flatten,” he said. “We need a second surge to meaningfully draw down inventory and definitively stabilize home values.”

The PHSI in the Northeast rose 9.0% to 77.7 in February and is 18.9% higher than February 2009. In the Midwest the index jumped 21.8% to 97.9 and is 18.7% above a year ago. Pending home sales in the South increased 9.2% to an index of 107.0, and the index is 17.5% higher than February 2009. In the West the index fell 4.8% to 98.0 but is 14.6% above a year ago.

“Anecdotally, we’re hearing about a rise of activity in recent weeks with ongoing reports of multiple offers in more markets, so the March data could demonstrate additional improvement from buyers responding to the tax credit,” Yun said.

Avalar San Diego’s Loan Modification Division is getting alot of inquires and new clients who are seeking to get their present home loans modified. Our success ratio is high and the modifications proposals have been very attractive for the home owners.

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