Home Value Drop Larger Than Shown!

Some, reading yesterday’s post on the 1% San Diego home value may at first think that it’s only 1% as reported. But, the ‘real’ story is that for many months now, the top purchasing incentive used both on resales and new construction has been the big incentives. Yes, it is almost standard to offer closing costs, a year or two of HOA dues, kitchen appliances and more to move the properties. The 1% price drop noted in the lasted Dataquick report DOES NOT take these incentives into account in their sale numbers. I would venture to say there purchase incentives may add an additional 1-2% to the ‘real’ value decline. 

Search every San Diego MLS listing at www.brokerforyou.com San Diego homes. 

San Diego Home Prices Fall!

For June ’06, the median home price in San Diego fell for the first time in nearly a decade and sales tumbled in Los Angeles County, according to just released real estate figures.

The median price of all homes sold in San Diego last month fell 1% from the same month last year to $488,000, according to DataQuick Information Systems.

The importance of this, is that the traditionally strongest real estate marketing time is from May through August. For a price drop to occur now,
can only be a harbinger of a much more pronounced drop as we enter into Fall/Winter.
 
I’m not selling my San Diego home, but have sold all my investment properties.

If one considers the BILLIONS in adjustable loans due for their first adjustment in 2007/8 combined with the huge percentage of 100%loans used to purchase at the height of our market….you have to worry!
 
But, than again what is so bad about a 20-30% decline in values if we are coming off 100% increase over the last five years?

I’ll answer my own question….nothing so bad as long as you were not speculating, purchased beyond your means or refinanced you property at 90% or more of its high value.
Newer real estate sites: La Jolla real estate – Del Mar real estate – Poway real estate – Sacramento real estate – San Francisco real estate – Orange County real estate – San Jose real estate – Los Angeles real estate