Sales of existing homes rose in the same period as foreclosed properties and lender “short sales”, which are homes that sell for less than what is due on their mortgages and offer better discounts than new home sales.

Meanwhile, San Diego home builders experienced their worst quarter in 30 years — or perhaps longer, according to MarketPointe Realty Advisors, which has been monitoring the home building industry for the last three decades.

“If this isn’t the bottom, I don’t know what would be,” said MarketPointe President Russ Valone in a release.

New home sales have fallen in five out of the last six quarters in San Diego. Net sales volumes recovered in the second quarter of 2008, posting a 42 percent increase over the previous quarter. However, the upswing was short lived as the third quarter of 2008 was San Diego’s worst quarter since MarketPointe has been keeping statistics.

Inventory levels continue to decrease. Total inventory decreased by nearly 11.5 percent overall. Detached total inventory dropped 6.1 percent this quarter while the attached sector fell 17.2 percent.

Overall, detached inventory represents 28 months of supply while attached inventory represents 37 months based upon absorption trends of the past 12 months, according to MarketPointe.

Source: San Diego Business Journal Online

This rise in existing home sales benefits those who are in the short sales market and should see a nice increase in business within the San Diego area and others nationwide as the trend continues.

Learn more about Short Sales and how they can be used to Prevent Foreclosure at Short Sale Holdings.