Fallbrook & Bonsall Boast Relatively Low North County Distressed Property Rates
February 5, 2011 – As of this writing, there is a marked regional difference in the density of foreclosed or short sale homes offered for sale in major North County San Diego communities. Oceanside, Vista, and San Marcos are relatively awash in distressed properties as we head into the spring buying season with San Marcos leading the way at over 42% of all “for sale” properties classified as “distressed.”
The combined Fallbrook/Bonsall market area, in contrast, lists just 22% of homes as either bank owned or “short sales.” The Pauma Valley zip code, 92061, has the lowest level of distressed properties, with just 14% of homes classified as “distressed.” Carlsbad inventory is 25% distressed. (See Graph Below)
For sellers, large percentages of distressed homes on the market often means brutal downward pressure on pricing. On the surface, this would seem to favor buyers seeking deals, but in my experience, it also means there are fewer “cherry” properties available for the picking. Many bank-owned and short sale homes are in need of major repair or clean-up, which means added costs. The truth is, that more than a few of these homes are complete wrecks that need re-construction before they can be occupied. Many banks won’t finance owner-occupiers if major renovations are needed before the property can be occupied.
It is hard to explain the exact reasons why Pauma Valley, Fallbrook, Bonsall, and Carlsbad have fewer distressed properties for sale. What we can say is that it is harder to find bank-owned properties in these communities.
As the availability of distressed properties shrink in certain areas, keep in mind the fact that many distressed properties are of lower quality. Often, the best properties are held by owners who care about them, hang on to them, and when the time comes to sell them, these standard sale properties are often more desirable, better located and in excellent condition.
Distressed Stats Charts For February 5, 2011
Note: Totals are accurate only as of this writing and include only those properties that are actively for sale. Total figures are only approximate and do not include all MLS listed homes in the SANDICOR database due to advertising restrictions. Mobile and manufactured homes may not be included in totals.
Published on Monday, February 7, 2011