In my most recent article, I posted an update on 2009’s first quarter. The long and short of it is that inventory (supply) is down and sales (demand) is up.

This is a trend we have been looking at for over 3 months. We had gotten used to seeing a new foreclosure for sale every week in our San Diego neighborhoods and as soon as we got used to it, they are gone…

So, where have all the San Diego foreclosures gone?

The banks are holding on to homes already foreclosed and trying to keep the struggling homeowners in pre-foreclosure from getting foreclosed upon. The new administration is promoting and subsidizing various strategies to keep foreclosures from happening. Coupled with a boom in demand from low home loan rates, tax incentives and low home prices, the result is a lack of inventory in our marketplace and a very quick return to a seller’s market in the lower price ranges.

After all, who wants to sell when you are near or at the bottom? Only those that have to….the bank. And with very little new bank-owned inventory, I am seeing the type of competition that we saw in the frenzied days of the early 2000’s boom.

My clients are competing against not 2 or 3 other offers, but literally 30 offers. VA and FHA buyers are getting beat out consistently by large down payment or all cash offers. I’m tempted just to tell any VA buyers right now to forget about it – that’s certainly how it feels – like they are wasting their time.

But the only good news I have is that the foreclosures in San Diego will be returning soon to a neighborhood near you. Some are expecting the flood gates to open from Fannie Mae in July, but I can’t predict the future of when it happens, only that it has to happen sometime soon. With prices actually starting to go up right now, we need new inventory for demand to eat up. For now, I’m holding my breath...

Visit my website to search all San Diego homes currently listed for sale – Updated daily with interactive map.

Adam Pascu
Team 73 Degrees
Keller Williams Realty
858.761.1707

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