Issuu on Google+

ASK

Volume 1, 2013

A R E A L E S TAT E SELLER’ S GUI DE

QUESTIONS & ANSWERS www.McMillinRealty.com

Welcome to our first edition of ASK McMillin, A REAL ESTATE SELLER’S GUIDE. This Guide is created for sellers, with the idea in mind that as we enter into a period of market recovery, what are the considerations sellers need to be aware of when making their decisions regarding their largest investment, their home. ASK MCMILLIN is intended to be a resource to make you aware of what is affecting market values. We know the internet is a great tool. We also know that understanding trends is very valuable for current home owners. As your local real estate company, McMillin Realty has been tracking trends for over 50 years in this market area. We feel that you can trust us because the name on our doors carries the McMillin family values that started right here in San Diego. We are big enough to have the knowledge and resources you need, and we are small enough to care! ASK McMillin: Do you believe that 2013 will be the year when we see the recovery stabilize in the real estate market? SCOTT MCMILLIN: Yes, I believe that the recovery of the real estate market actually began in 2012. Our company saw continued improvement month over month in 2012. Our year-end figures totaled with an 8% increase in closed sales, and our closed sales volume was up 14% over 2011.

hours of 2013, extended the Mortgage Debt Relief Tax Forgiveness Act. This is great news for sellers who need to use the Short Sale as a means of selling their home.

ASK McMillin: What things do home sellers need to consider when selling their home? SCOTT MCMILLIN: Sellers need to be more aware than ever of the local real estate expert, the Realtor who has the most experience in the locale where their home resides. In ASK McMillin: We today’s market, a seller are hearing it is a seller’s needs to understand market? What does the competition that mean? of the homes they SCOTT MCMILLIN: will be competing A seller’s market is against when they go the name given when on the market. The we see prices rising, competition could multiple offers, and include “distressed” fewer days on the properties, such as market. Today we are the seller who needs experiencing a seller’s to sell their home as market based on the a “short sale.” The law of “supply and price accepted by a demand.” The number SCOTT McMILLIN traditional seller (one of homes available for with equity in their sale is extremely low property who will get cash back at closing) and there are more buyers in the market than versus the price accepted by a short sale the supply can handle. seller (one who will walk away with nothing, no matter what the sales price is, and with the ASK McMillin: What does that mean for bank paying all fees), can vary significantly. home sellers who owe more than their home A real estate agent with hyper-local market is worth in today’s real estate market? knowledge will be the guiding force to get SCOTT MCMILLIN: Home sellers who owe more than their home is worth still have a very the highest possible price in today’s market. There are many real estate agents who over viable option in the “Short Sale.” Although the last 5 years have only been working in the the prices are rising, many homeowners out distressed property sales. In that case, they there who bought at the high point of the market, with low or no down payment, are still may not have the tools, the marketing skills, finding that their best option is the short sale. and the knowledge to handle the traditional, Also, the federal government in the late hours equity seller, who is looking for top dollar and of December 31, 2012, going into the morning on-time closings.

NEWS YOU Can TRUST

Sources confirm market trends.


2

ASK McMILLIN REALTY | Volume 1, 2013

LUXURY MARKET

The luxury home market throughout San Diego is heating up. A total of 1,438 homes priced between $1 Million and $2 Million sold throughout the county. The agents who work exclusively in the luxury home markets indicated that the luxury homebuyer is very similar to other homebuyers in that they are looking for a good price, they do not want to overpay, and even when paying cash, they want some assurance that the property will continue to hold its value.

Healthy & Strong

LUXURY SAN DIEGO COUNTY 2012 Sold Homes: Monthly History

1 Mil

$

2 Mil

$

2 Mil

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEPT

OCT

NOV

DEC

50

77

106

120

128

157

115

142

127

143

132

141

15

11

18

28

22

28

16

32

26

30

20

28

8

5

8

7

14

17

9

16

6

9

12

12

3

0

5

2

4

4

2

10

0

4

4

7

$

3 Mil

$

3 Mil

$

5 Mil

$

5+ Mil

$

Highlights

Please note: Source SD MLS/Sandicor. Listings and sales reflect transactions through the MLS. Some transactions occur outside the MLS, e.g., transfers between family members are not included in the data because these transfers may not reflect market prices. Data is subject to change as errors and delays in recording are corrected. McMillin Realty and the Corky McMillin Companies does not warrant the accuracy of this information.

The $1M to $2M price point had

1,438 closed units in 2012

The over $2M price point

rose 13% in median sales price

www.McMillinRealty.com

The over $2M price point had over

400 closed units in 2012.

The median price per sq ft on the over $2M price point is $333.00/sq ft, which is an increase of 2% over the year before.


ASK McMILLIN REALTY | Volume 1, 2013

SAN Diego METRO & COASTAL Downtown, Mission Hills, Point Loma, Coronado & La Jolla

For number of units closed in 2012, the top selling price in these combined Metro/ Coastal markets is the $300,000 to $500,000 market. An average of 60 homes closed each month last year, while in the South Bay area, 150 homes in this price range closed each month. The price range with the second highest number of homes sold is the $500,000 to $800,000 market, which closed an average of 53 homes each month. As the price range climbs to the $800,000 to $1 Million range, an average of 22 homes closed each month in the Metro/Coastal market, but in the South Bay market, only 1 home sold per month between $800,000 to $1 Million. The price point which came in third for units closed in the Metro/Coastal market was the $1 Million to $2 Million price range, averaging 50 closed home sales each month. What does this mean? This means it is very important for you as a seller to get a Realtor in your local market who can review trends and prices with you so that you can make knowledgeable decisions when it comes to deciding whether or not to sell your property.

SD METRO/COASTAL 92037, 92106, 92103, 92101, 92118, 92178 2012 Sold Homes: Monthly History

300,000

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEPT

OCT

NOV

DEC

30

44

63

58

65

60

60

70

56

70

59

79

26

31

47

50

55

56

60

54

53

57

63

78

13

20

28

17

19

24

32

27

15

25

22

23

24

36

48

54

61

63

40

60

55

56

50

50

0

4

4

4

3

5

3

7

4

3

6

4

1

0

1

1

2

1

0

1

0

1

4

6

$

499,999

$

500,000

$

799,999

$

800,000

$

999,999

$

1 Mil

$

3 Mil

$

3 Mil

$

5 Mil

$

5+ Mil

$

Please note: Source SD MLS/Sandicor. Listings and sales reflect transactions through the MLS. Some transactions occur outside the MLS, e.g., transfers between family members are not included in the data because these transfers may not reflect market prices. Data is subject to change as errors and delays in recording are corrected. McMillin Realty and the Corky McMillin Companies does not warrant the accuracy of this information.

www.McMillinRealty.com

3


4

ASK McMILLIN REALTY | Volume 1, 2013

Type Of Home Sale Dramatically Shifts In South Bay Foreclosures

Traditional Sales

South Bay was the hardest hit region in San Diego County during the down turn in the market (2006-2011). As the graph shows, the foreclosure market in 2009 was the largest segment of closed transactions. Jumping forward to the graph in 2012, the foreclosure market is the smallest segment of closed transactions. McMillin New Homes was constant in the South Bay with building new homes during this time period. However, 2012 showed healthy growth with multiple builders offering new home inventory. New home sales increased to 705 units closed in 2012 and default notices in the foreclosure arena dropped a third in areas like Otay Ranch and East Chula Vista, and 47% in South East Chula Vista.

ANNUAL SOUTH BAY HOME SALES DATA

Source: DataQuick • www.DQNews.com

Zip Code 91902 91910 91911 91913 91914 91915

SALES TYPE

MEDIAN PRICE

2009

2010

2011

JAN-NOV 12

2009

2010

2011

JAN-NOV 12

Short Sale

43

41

66

66

$375,000

$445,000

$416,250

$365,000

Conventional

65

80

100

110

$421,000

$440,000

$425,000

$435,000

REO Sale

96

52

62

35

$375,000

$455,000

$397,000

$388,750

Short Sale

158

187

209

195

$250,000

$280,000

$265,000

$265,000

Conventional

197

297

266

290

$290,000

$304,000

$295,000

$305,250

REO Sale

386

191

162

106

$244,250

$260,000

$240,000

$264,500

Short Sale

167

180

244

204

$240,000

$230,000

$225,000

$220,000

Conventional

233

287

325

294

$267,500

$260,000

$265,000

$279,500

REO Sale

536

236

177

109

$207,500

$210,000

$210,000

$225,000

Short Sale

261

324

342

363

$312,000

$328,750

$315,000

$312,000

Conventional

368

400

464

480

$356,000

$357,000

$357,000

$355,314

REO Sale

464

228

192

147

$330,000

$314,000

$305,000

$290,000

Short Sale

96

142

126

128

$410,000

$375,000

$425,000

$399,500

Conventional

159

205

185

171

$579,500

$570,000

$550,500

$539,000

REO Sale

206

112

93

58

$420,000

$432,500

$425,000

$424,000

Short Sale

233

239

241

293

$320,000

$320,000

$315,000

$313,000

Conventional

292

331

276

299

$367,000

$351,000

$342,000

$340,000

REO Sale

340

164

158

105

$319,000

$322,250

$310,000

$307,500

DataQuick of La Jolla, California is a public records database company and gets its real estate information from public sources, for the most part county assessor’s offices and county recorder’s offices. While every effort is made to ensure data quality, DataQuick cannot guaranty data accuracy.

HOME SALE DATA BY ZIP CODE 2009

REO SALE

2010

2011

SHORT SALE

CONVENTIONAL

Jan-Nov 12

500+

480 460

440 420

400

NUMBER OF SALES

380

360 340

320 300

280 260

240 220

200 180

160 140

120 100

80 60

40 ZIP CODE

91902

91910

91911

91913

91914

91915

91902

91910

91911

91913

91914

91915

91902

91910

91911

91913

91914

91915

91902

91910

91911

91913

91914

91915

Source: DataQuick; DQNews.com

www.McMillinRealty.com


ASK McMILLIN REALTY | Volume 1, 2013

5

SAN Diego SOUTH BAY

Chula Vista, Bonita, Eastlake, Otay Ranch & Rolling Hills The strength in the market increased in 2012. The most sales were reported in the $300,000 to $500,000 range. This price point represents the first time buyer in many cases, the buyer who realized that with pricing being low and interest rates at all time lows, there has never been a better time to buy. The move-up buyer was not in the market as much in 2012, evident in the number of sales from $600,000 to $1 Million. Interestingly, the price range of $800,000 to $1 Million was a slow selling price range throughout San Diego County. The influence of the move-up buyer will grow in 2013; that buyer who purchased in the $200,000 to $400,000 price range, buying a smaller home or condo, will have equity to trade up and can still take advantage of the very low interest rates. Next year this graph will look very different!

As far as distressed properties go, San Diego’s South County market was one of the hardest hit markets in the country. The bank-owned properties (properties that were foreclosed on by the banks) were the highest number of sales during 2009 in the zip codes stated. In 2009, bank-owned properties dominated the market and also played a lead role in 2010. In 2011, the distressed property market saw the upside down/short sale closings in the lead over the bank-owned sales. The good news is that 2012 also brought back a stronger foothold in the traditional home seller’s market (sellers with equity, who receive cash back at the close of escrow). Last year, in 2012, the bank-owned property sales were well below traditional and short sales. This tells us two things: 1) The market is recovering and 2) The banks have changed their strategy in working with home sellers, opting for more short sales and fewer foreclosures.

SOUTH BAY 91910, 91911, 91913, 91914, 91915, 91902 2012 Sold Homes: Monthly History

300,000

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEPT

OCT

NOV

DEC

141

90

121

155

145

142

118

141

137

165

116

154

$383,495

$373,795

$381,112

$378,960

$382,383

$377,800

$385,550

$374,943

$389,149

$381,020

$384,269

$386,015

19

9

19

22

13

21

26

29

23

21

24

36

$598,804

$618,811

$618,542

$594,204

$611,882

$612,628

$612,091

$617,803

$603,547

$623,412

$595,768

$594,833

0

0

0

1

3

2

2

1

1

1

3

1

$900,000

$883,333

$932,000

$830,495

$759,900

$985,000

$949,990

$997,967

$850,000

0

0

2

2

1

0

2

1

1

$

499,999

$

AVERAGE PRICE –>

500,000

$

799,999

$

AVERAGE PRICE –>

800,000

$

999,999

$

AVERAGE PRICE –>

1+ Mil

$

AVERAGE PRICE –>

2

1

1

$1,398,500 $1,499,000 $1,500,000

$1,642,500 $1,197,500 $1,250,000

$1,099,500 $1,250,000 $1,349,900

Please note: Source SD MLS/Sandicor. Listings and sales reflect transactions through the MLS. Some transactions occur outside the MLS, e.g., transfers between family members are not included in the data because these transfers may not reflect market prices. Data is subject to change as errors and delays in recording are corrected. McMillin Realty and the Corky McMillin Companies does not warrant the accuracy of this information.

www.McMillinRealty.com


ASK McMILLIN REALTY | Volume 1, 2013

SOLD D L SO

D L O S &

&S

OL

D

Choosy Sellers Choose &S

& SOLD

OL

D D L O

S & Google Us

6

McMillin Realty & 15 other keywords appear on page 1 of Google.

Agents personal website “Backlinked”

for highest SEO.

www.McMillinRealty.com

Over

99,900 potential buyer and seller visits in 2012.

67.47%

total new visits.


ASK McMILLIN REALTY | Volume 1, 2013

LEVERAGING THE Reach of

www.McMillinRealty.com

THE Reviews ARE IN!

With over 50 years of serving San Diego County, if the reviews weren’t good, we wouldn’t be here.

Google Us!

44% Organic, 20% PPC

of visits came from

Google.

#1 feature used was

“Property Search”

46,894 page views and 8,328 visits monthly on average

www.McMillinRealty.com

7


8

ASK McMILLIN REALTY | Volume 1, 2013

MAKE THE RIGHT CHOICE Choose McMILLIN REALTY

Access to homes for sale & MLS listings throughout San Diego County. ANYtime, ANYwhere pull up homes for sale around you using the GPS search. Search based on address, city, zip code, price, number of bedrooms and baths…

Live Chat

Mobile App

As seen on TV

A 24/7 live chat service. Connecting clients with agents based on their needs/wants. Allows client to navigate site with direction & ease. Chat thread is appropriately matched with an experienced agent!

Details include prices, square footage, pictures, features, maps, estimated mortgage, taxes and more! Save property searches, email or text homes & share with friends!

Download the McMillin Realty App today!

GO AHEAD,

ASK

A RE A L E S TATE S E L L E R ’ S G U I D E

www.McMillinRealty.com


Ask McMillin Realty