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.
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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
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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
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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
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ASK McMILLIN REALTY | Volume 1, 2013
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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
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ASK McMILLIN REALTY | Volume 1, 2013
MAKE THE RIGHT CHOICE Choose McMILLIN REALTY
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A RE A L E S TATE S E L L E R ’ S G U I D E
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