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Ron Johnson, Real Estate Pro in Las Vegas, NV

How close do you think the market is to the bottom in Solano Beach, Encinitas and Carlsbad?

Asked by Ron Johnson, Las Vegas, NV Thu Nov 6, 2008

I have a client of mine in Las Vegas who is very successful and is considering purchasing a second home in these areas. He is looking for a 2 bedroom, 2 bath unit with water views in a complex that sits on the water. He does not want to purchase yet if the Real Estate pro's from the area think it is going to fall substantially in the next 12 months.
From his research online right now this is his favorite unit: 190 Del Mar Shores Terrace, unit 44, Solano Beach, CA 92075.

This is in the agent to agent section so I would appreciate straight forward answers like you would advise a member of your family.

I also will eventually be looking for an agent to refer my client to in the area that will treat my client excellent and pay a normal referral fee to me.

Ron Johnson
Elite Realty

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Answers

5
Ron,

I can't say if we have hit bottom yet, but I can tell you that at the bottom it is a feeding frenzy. MOST listings are going for asking or over. I just had a client call me Thursday who wanted to put an offer on a house that was listed for 390k, that was still active on the MLS. I called the agent to find out if (and how many) offers there were. There were 19 offers and it was already up to 470k. That has been the case for the last 9 offers we have made on homes (and din't get. I have heard other agents say they are putting "escalater clauses" in all of their offers. Of course, as I said, this is at the low end and almost exclusively short sales.

So, it would appear that biz has picked up. It seems all of the investors who got burned in the stock market are now buying up the cheapies.

Hope this helps!

Sarah Dupree
http://www.sarahdupreerealty.com
0 votes Thank Flag Link Sun May 24, 2009
Thanks for answering my question. I appreciate your input. I will pass this information along to my client.

I also think the idea to rent a unit first is an excellent suggestion.

Ron Johnson
0 votes Thank Flag Link Fri Nov 7, 2008
Prime Coastal real estate has fallen relatively little when compared with outlying areas. What constitutes a significant decline differs from person to person but my belief is oceanfront condo properties in these areas are at fairly high risk of significant declines in the next 12 months. If he is very risk adverse there are plenty of prime units available on short term rentals (daily, weekly, monthly etc.). If he can find a truly spectacular property (location and floorplan) at a below market price a case could be made for jumping in if he has some risk tolerance. How is that for a straight forward answer?
0 votes Thank Flag Link Thu Nov 6, 2008
Hello Ron,
The best way to judge whether a market has bottomed it to track the ratio between Active and Pending listings. When this ration begins to get tighter for several consecutive weeks you have seen the turning point of the market. Prices will probably not bottom out for a few more months but this indicator is an early warning for smart buyers to get serious.
In markets such a Vegas this indicator needs to be used carefully as it can easilly be distorted by the number of Pending Sales which are actually Short Sales which in all too many cases do not close. I like to factor in the number of active Short Sales when doing my week-to-week tracking.
Good luck,
Bill
0 votes Thank Flag Link Thu Nov 6, 2008
Dear Ron, Most of our coastal San Diego markets have gone though market adjustments and I think we are close to the bottom in lower priced units, particularly with water views. Of course no one has a crystal ball and there may be some additional adjustments - maybe another 10% but a buyer that is smart and buys right will be okay as there are not that many units with views. Carlsbad has seen more price adjustments than Solana Beach and Encinitas. There are some excellent units in Del Mar too that he may want to consider. Hope that this helps and give me a call and send me an e-mail if you want some market data and would be happy to help you and your Client. I work in both the downtown San Diego market and Rancho Santa Fe which is close to Encinitas, Solana Beach, and Del Mar. My phone number is 858-352-8280 and e-mail is jeffreydouglass@mac.com.
0 votes Thank Flag Link Thu Nov 6, 2008
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