For those who have been following the market in San Clemente for the last year you are well aware of the shortage of inventory in the last year. Starting in mid-summer the San Clemente Real Estate market saw a drastic decrease in the number of homes coming on the market. One of the areas most hit was the Southwest San Clemente area for homes under $1,000,000. As a lot of buyers quickly realized that the bottom of the market has been passed and homes were starting to increase in price was the time these buyers wanted to get back into the market. The sweet spot for a lot of buyers is under the $1,000,000 price point. Early in the year we saw several homes sell in the low $500,000 range which gave encouragement for those who have been wanting to live in this desirable location by the beach. These deals seem to be long gone as newer listings are coming up well above the $1 million dollar price point.
The talk for the year 2013 is the shadow inventory and the possibility for future foreclosure properties to come on the market. From many sources that I have heard from this will probably not happen. Many of the national banks are gearing up to help homeowners short sell their home in lieu of letting the home go into foreclosure. So the good news is that we will probably see some short sale listings come on the market but it will be a very gradual event as these homes come on the market one by one. If you are in the market to buy in 2013 be prepared to bid on a short sale as these homes are dominating our current marketplace under $1,000,000. One of the keys to buying a short sale is to bid aggressively and quickly. Agents want to get a strong offer into the bank as soon as possible so make sure your pre-qualification letter and proof of funds shows you are well qualified to buy the home. In addition, a nice cover letter and photo of yourself and your situation never hurts in hitting the emotional side with the seller.
Will prices go up in 2013? That seems to be the magic question everyone is asking especially in light of the fiscal cliff that is happening at the end of the year. If everything is worked out on that front then economists are forecasting prices to slowly increase by 7% in the upcoming year. Real Estate has always been a strong investment especially in light of the ups and downs of the stock market. If you would like to learn more about buying a home in the San Clemente area please contact us anytime. We know the market very well and can help you locate a perfect home as they come on the market. It's always good to have someone looking after you best interests.