State of the Market – July 2, 2010

All of Chula Vista – 91910, 91911, 91913, 91914 & 91915

The city currently has 659 single family attached and detached (condos & houses) homes actively for sale on the MLS. Of the active properties for sale, 91 (14%) are foreclosures, 348 (53%) are short sales and the rest are not tagged as distress related.

Last month 260 units sold, leaving us with a 2.5 month supply of inventory. A normal inventory level is 5 to 6 months, making this inventory level very low. The average sale price of the homes that sold last month was $324,054. This number can adjust quickly and drastically, depending on what is selling. For example, if we had a rush on studio condos selling, that would greatly affect that average number.

Recently, there has been much talk about “shadow inventory” or properties that are in distress or have been foreclosed on that have not yet been released for sale. In Chula Vista, public record shows 739 bank owned homes, of which 510 are not in active, pending or contingent status on the MLS. That number would account for another 2 months of inventory supply for the city. The number of distressed homes in public record is much higher at 2253. These are homes that are still the property of the owners, but either a Notice of Default or Notice of Trustee’s Sale has been filed. Of the 2253, approximately 1050 are not in active, pending or contingent status on the MLS. These properties could be saved through loan modifications, but if they were to all come to market, it would provide the city with another 4 months of inventory supply.