Ask McMillin Realty

Volume 1, 2013

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 mak-ing 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.

ASK McMillin: We are hearing it is a seller’s market? What does that mean?SCOTT MCMILLIN: A seller’s market is the name given when we see prices rising, multiple offers, and fewer days on the market. Today we are experiencing a seller’s market based on the law of “supply and demand.” The number of homes available for sale is extremely low and there are more buyers in the market than the supply can handle.

ASK McMillin: What does that mean for home sellers who owe more than their home is worth in today’s real estate market? SCOTT MCMILLIN: Home sellers who owe more than their home is worth still have a very viable option in the “Short Sale.” Although the prices are rising, many homeowners out there who bought at the high point of the market, with low or no down payment, are still finding that their best option is the short sale. Also, the federal government in the late hours of December 31, 2012, going into the morning

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 today’s market, a seller needs to understand the competition of the homes they will be competing against when they go on the market. The competition could include “distressed” properties, such as the seller who needs to sell their home as a “short sale.” The price accepted by a traditional seller (one with equity in their

property who will get cash back at closing) versus the price accepted by a short sale seller (one who will walk away with nothing, no matter what the sales price is, and with the bank paying all fees), can vary significantly. A real estate agent with hyper-local market knowledge will be the guiding force to get the highest possible price in today’s market. There are many real estate agents who over the last 5 years have only been working in the distressed property sales. In that case, they may not have the tools, the marketing skills, and the knowledge to handle the traditional, equity seller, who is looking for top dollar and on-time closings.

NEWS YOU Can TRUST Sources confirm market trends.

QUESTIONS & ANSWERSwww.McMillinRealty.com

SCOTT McMILLIN

ASKA REAL ESTATE SELLER’S GUIDE

LUXURYMARKET

Healthy & Strong

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.

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

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.High

lights

$2 Mil$3 Mil

$3 Mil$5 Mil

$5+ Mil

NOVOCTSEPTAUGJULJUNMAYAPRMARFEB DECJAN

13214312714211515712812010677 14150

20302632162822281811 2815

12961691714785 128

44010244250 73

$1 Mil$2 Mil

LUXURY SAN DIEGO COUNTY2012 Sold Homes: Monthly History

ASK McMILLIN REALTY | Volume 1, 20132

www.McMillinRealty.com

SAN Diego METRO & COASTAL

Downtown, Mission Hills, Point Loma, Coronado & La JollaFor 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.


$300,000$499,999

$500,000$799,999

$800,000$999,999

$1 Mil$3 Mil

$3 Mil$5 Mil

$5+ Mil


63575354605655504731 7826

59705670606065586344 7930

22251527322419172820 2313

50565560406361544836 5024

6347353444 40

4101012110 61

SD METRO/COASTAL 92037, 92106, 92103, 92101, 92118, 921782012 Sold Homes: Monthly History

ASK McMILLIN REALTY | Volume 1, 2013 3


Type Of Home Sale Dramatically Shifts In South Bay

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.

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.

Trad

itio

nal

Sale

s

Fore

clos

ures

2009 2010 2011 Jan-Nov 12

ZIP CODE

480

440

400

360

320

280

240

200

160

120

80

40

HOME SALE DATA BY ZIP CODE REO SALE SHORT SALE

60

100

140

180

220

260

300

340

380

420

460

500+

NU

MB

ER

OF

SA

LE

S

Source: DataQuick; DQNews.com

91902 91911 91913 9191591910 91914 91902 91911 91913 9191591910 91914 91902 91911 91913 9191591910 91914 91902 91911 91913 9191591910 91914

CONVENTIONAL

SALES MEDIAN PRICE

TYPE 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

ANNUAL SOUTH BAY HOME SALES DATASource: DataQuick • www.DQNews.com

91910

91911

91913

91914

91902

91915

Zip Code



SAN Diego SOUTH BAYChula 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.

$300,000$499,999

$500,000$799,999

$800,000$999,999

$1+ Mil


$384,269$381,020$389,149$374,943$385,550$377,800$382,383$378,960$381,112$373,795 $386,015$383,495AVERAGE PRICE –>

$595,768$623,412$603,547$617,803$612,091$612,628$611,882$594,204$618,542$618,811 $594,833$598,804AVERAGE PRICE –>

$997,967$949,990$985,000$759,900$830,495$932,000$883,333$900,000 $850,000AVERAGE PRICE –>

2421232926211322199 3619

11616513714111814214515512190 154141

3111223100 10

1201220011 12

SOUTH BAY 91910, 91911, 91913, 91914, 91915, 919022012 Sold Homes: Monthly History

$1,250,000$1,099,500$1,250,000$1,197,500$1,642,500$1,500,000$1,499,000 $1,349,900$1,398,500AVERAGE PRICE –>




McMillin Realty & 15 other

keywords appear on page 1 of

Google.

Agents personal website

“Backlinked” for highest

SEO.

Over 99,900

potential buyer and

seller visits in 2012.

67.47% total new

visits.

Choosy Sellers

Choose

Goo

gle

Us

SOLD

SOLD

& SOLD & SOLD

& SOLD

& SOLD

& SOLD



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

LEVERAGING THE Reach of


With over 50 years of serving San Diego County, if the reviews weren’t good, we wouldn’t be here.

THE Reviews ARE IN!

Google Us!



MAKE THE RIGHT CHOICE Choose McMILLIN REALTYAs seen on TV

Access to homes for sale & MLS listings throughout San Diego County.

ANYtime, ANYwhere pull up homes for sale around you using the GPS search.

Search based on address, city, zip code, price, number of bedrooms and baths…

Details include prices, square footage, pictures, features, maps, estimated mortgage, taxes and more!

Save property searches, email or text homes & share with friends!

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Connecting clients with agents based on their needs/wants.

Allows client to navigate site with direction & ease.

Chat thread is appropriately matched with an experienced agent!

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