Otay Ranch EXPLOSION!!!

I wanted to give everyone an update on Otay Ranch. At the end of February and into March there has been an explosion of activity in the area. Here are the numbers for detached homes, 1700+ square feet, between $300-400k.

In the past 6 months (prior to March) ONLY 1 PROPERTY SOLD.
Since the end of February, 9 PROPERTIES SOLD and 32 WENT INTO ESCROW!!!!!!!! That’s all within the past month!!! (And that doesn’t even include the “short sales” that have an accepted offer that are still required to list the property as active until bank approval). Feel free to ask me for a chart detailing these numbers.

Against all the pundits predictions, February’s numbers were up, and the stock market reacted with the good news. I predict March will show another increase in transactions, and the summer (generally the hottest time in the market) isn’t even here yet. Both my preferred lender and inspector report the busiest months in their entire careers. I personally have never had so much activity either. Since October almost nothing happened, then once mid-February hit I've been working non-stop (just ask my lonely wife!).

In a follow up with my previous post on "Mini Bidding Wars," I'd like to share a few situations that I've encountered recently. With one client we've been out bid on 6 properties, and all of our offers were at or above list price. We're in escrow on the 7th. On separate occasions two clients were in love with a property and when I called to ask if there were any other offers, I could tell right away from the stress in the voice of the other agents that there were many - but I wasn't expecting 18 and 22 offers respectively! A third client put out 3 simultaneous offers on foreclosures, with one $21,000 over asking price - and it was still rejected!

MY PREDICTION: The situation in Otay Ranch isn't much different than other desirable areas in the county. The March numbers will come out in mid-April, and San Diego will have a sign of hope. April's numbers will be even better, because many properties in escrow will take 30 days to close, and San Diegans will have a whole new outlook on the market. Prices will remain flat, and we'll be in the "absorption" phase of the market cycle where the inventory is reduced as more people buy.

MY ADVICE: Buy! There are still deals out there, but they're going quick. More will pop up throughout the year, but they will go quickly. Don't chance it.