Trouble (as in housing not beer!) brewing in San Diego....

Yes we do have good local beers here in San Diego but there is not a problem with our beers, our problem is with housing prices at the lower end of the scale. Want a cheap beer - no problem, want a cheap home - big problem. It's not good news...

I have written about this in indirect ways before but we are definitely seeing a big issue with first time homebuyers who are desperately trying to get into their first house before the $8,000 tax credit ends November 30th. The issue is the shortage of homes available in the right price range.

For example, looking for a single family home under $200,000 that will qualify for an FHA loan - 3.5% down and all the regulations that go with the loan, it is nearly, actually almost impossible in San Diego. Wanting to do a VA loan with zero down and closing costs paid by the seller, not really an option when you are competing with offers that do not ask for any costs back to the buyer or a cash investor (and there are plenty out there).

Wanting a house that qualifies for any other State or government loan, the same - almost too difficult to achieve.

WHY?

There are too many buyers, too little inventory (homes for sale) and too much competition with multiple offers for all lower priced properties.

Even in the condo market we are seeing the same situation, if it's a deal, a steal, then be prepared to compete with everyone else thinking the same. Even cash offers are often beaten by investors with higher cash offers and nothing, absolutely nothing, priced under $350,000 goes for asking or lower than asking price today.

What are we to do? I'm not sure, the bottom hit a few months ago, it's a seller's market and even with foreclosures about to be released after a moratorium, their low prices increases the bidding wars and invariably they sell for 20 - 30% over list price.

It's not fair, it's frustrating, ask any Realtor who works with first-time homebuyers and ask how many offers they are submitting for each client - I can guarantee it's more than at least 4 or 5, more like 10 - 12 or more.

So the answer, there is none, try and find a seller willing to accept your offer, or keep saving and keep fingers crossed for that one home that you can qualify for.

Back to a good cheap beer, relax, take a deep breath and know your Realtor is really, really trying their best to help YOU!

For the latest on the housing market check this article published this week:

San Diego Daily Transcript

Jane Loveday
Windermere Real Estate Agent
619-519-1615 Cell
http://www.JaneLoveday.com