The Return of Real Estate

“The Return of Real Estate” headlines the April issue of Fortune magazine.  The Hernholm Group has been watching for this type of headline as we have seen proof of it in the first quarter of 2011.  San Dieagans will be pleased to know that according to this article, we are in an elite company of cities: “. . . markets such as Northern Virginia, Indianapolis, Minneapolis, SanDiego, the San Francisco suburbs, and virtually all of Texas held up reasonably well.”  From all data points, San Diego will continue to hold its own due to the law of supply and demand.  “It has just 921 freestanding homes for sale or under construction, compared with 4,425 in late 2005.”   Even Karl Case, one of two economists who created the widely recognized S&P/Case-Shiller Home Price indices, comments: “the lack of new home building is a huge help that a lot of people are ignoring.  People think I’m crazy to be optimistic, but housing is looking like the little engine that could.”

Coastal San Diego neighborhoods are hitched to this “little engine that could.”  In contrast to the Chicken Little “doom and gloom” buyers, still waiting for the sky to fall, savvy buyers recognize the values that are now theirs for the picking.  Last month Canadian buyers snagged our listing on Ocean Boulevard for $6M cash before Coronado brokers had an opportunity to preview this oceanfront tramadol where to buy opportunity.  East Coast buyers (with relatives hooked  into the local real estate market) secured an architect designed home on a secluded canyon for just over $2M, a value that local buyers had circled for months.  A job relocation from Arizona to San Diego triggered a quick decision on our new listing in La Jolla’s Barber Tract.  After searching for several months, these buyers recognized value when they saw it.  Virginia buyers relocating from another value solid neighborhood near Washington D.C. saw the value of homes in Mission Hills and purchased a remodeled historic landmark Craftsman, which three local buyers circled for weeks, waiting for ?   Would Fortune’s article have motivated them to act?

Fortune does not hesitate to identify the good, the bad and the ugly.  Quoting his own forecast in 2004, “Is the Housing Boom Over?” Shawn Tully references  continued reliance on market fundamentals to reach a very different conclusion in April 2011: “Our current view focuses on those same fundamentals — only now they’re pointing in the opposite direction.”

Where are you pointing?  The Hernholm Group welcomes your real estate inquiries.  We can assist you in determining if now is the time to consider buying a larger home, an investment property, a second home, or selling your home in order to downsize.  We have clients actively engaged in all of these scenarios.  It’s time to get back in the game!

Contact Us

  • Janna Hernholm,
  • CA BRE # : 00841932
  • Melissa Hernholm,
  • CA BRE # : 01253708
  • Matthew Hernholm,
  • CA BRE # : 01874558
  • 810 W. Washington Street
  • San Diego, CA 92103
  • P: 619.299.4272
  • E: janna (at) hernholmgroup.com

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