Realtors Struggle with Holiday Lull

The holidays might be the time when toys, clothes and gadgets get snatched up instantly, but houses don't seem to be on the list. 

"Selling right now is not a great idea," said Dave Corsaro with Coldwell Banker Tri-Counties in Diamond Bar. "Sales are dramatically down over what they were a few months back."

The median sale price of homes in Diamond Bar fell $96,750 since last year, when it was $329,250, according to a report compiled by Chino Hills Realtor Keisha Hosea. The median sale price for November 2010 was $232,500.

According to Corsaro, most open houses during the holidays are lightly attended, and homeowners are wary of allowing agents and potential buyers into their homes during a busy time.

"People are just in a sort of holiday mentality, and their attention is focused more on their own home and family," he said. "For the owners of the homes for sale, they want to have Christmas and not have people traipsing through while they're getting ready for the holidays. It's a double problem - sellers don't want attention and buyers don't want to go."

On top of the seasonal challenge, Diamond Bar also saw its inventory of condos and townhouses jump 270% over last year, creating a 31-month supply and making a strong buyer's market.

However, not many sellers are worried about unloading their property before the end of the year, especially those hoping for an upswing in 2011 home values.

"People who want to sell might be holding off, thinking that possibly next year there might be a slight increase," Corsaro said. "In fact, there has been by a very slight margin, maybe one or two percent. Beyond that, it's a little bit difficult to tell because of the extensive amount of foreclosure inventory the banks are holding."

Corsaro says banks are releasing homes gradually to avoid prices "dropping like a lead balloon." Banks don't want that to happen "because they will lose in the long run," he said, explaining a slower rate of release allows banks to maintain better value and get more for the property.

Residents of Diamond Bar are relatively lucky compared to those living in communities further inland. Due to the city's proximity to downtown Los Angeles, homes sell at higher prices than in comparable neighborhoods farther away. There is also a continual influx of interested buyers. 

"There is a huge Asian community constantly looking for good properties," Corsaro said. "A majority of the area is in a good school district, and that sells homes."

About a quarter of the inventory is "very well groomed," and in turnkey condition. The rest needs various degrees of help, from paint to substantial repairs. 

According to Corsaro, regardless of how long it takes to sell a home, most sellers just want to ensure that the interested buyer is able to seal the deal.

"Only 47 percent of the entire population of the United States can afford a home, according to the Wall Street Journal," he said. "Sellers just want to get a deal from someone who is a qualified buyer."