Real Estate Market Double Dip
According to the S&P/Case-Shiller index of home prices in 20 cities, home values are down 32% from their peak set in May of 2006.
S&P/Case-Shiller just reported that February home prices sank 3.3% to just above the post-crisis lows reached in April 2009. It was the seventh straight month of declines.
The only housing market in the 20 cities followed, only Washington recorded a price increase from last year of 2.7%. Read more 
The “man behind the curtain” is the “big banks”
How the big banks are fueling legislation that is hurting the housing market but will benefit them in the long run.
When we look back at the crazy housing market in the mid 2000′s, there were a lot of things that fueled crazy loans and crazy home prices. However, the dominant factor was rating agencies were lax or in on the profit. Brokerage houses were packaging MBS (Mortgage Backed Securities) and making large profits on the transactions. Legislation that was in place was not adhered to. In the end, there were products available that should not have been. Originators (like me) tried to advise people (I can’t tell you how many times I had a conversation where I told a client “I can get you approved for a larger loan than you are probably comfortable with. Let’s work to find something that you can afford within your budget”) but the lure of skyrocketing housing prices caused home buyers to pass on logic and bet on the come. There were poorly conceived loan products available. No one disputes that fact. However, the response to that fact has created a far worse outcome. Read more
San Diego Home Loans
Homebuyers spend twice as much time researching a new car purchase as they do investigating a home loan and they are soliciting fewer mortgage quotes than they did two years ago, according to a recent Zillow survey.
Borrowers who obtained a home loan in the past five years typically spent five hours researching their home financing options, which is unchanged from two years ago when Zillow first conducted this survey. Nearly one-third of borrowers say they spent less than two hours. However, consumers spent an average of 10 hours researching a new car purchase. Those who obtained a mortgage loan in the past five years solicited an average of three quotes, compared with four quotes reported in 2008. Read more
San Diego Real Estate Market Analysis
San Diego County Residential Real Estate Market Analysis: (Part 3 of 3)
The following is a market data summary of detached and attached properties as reported by the San Diego County MLS system. The data includes all zip codes in San Diego County. * All 2011 data in figures 1 through 4 will be projected based on market data taken from January through March as reported by the San Diego County MLS system. All projections discussed in this analysis will be updated throughout the year in subsequent quarterly reports. ©2011 By Mark A. Melikian California Certified Residential Appraiser appraisals@san.rr.com P.O. Box 3051 Del Mar, California 92014 858-793-9339
Detached and Attached Housing Market Specifics – 1st Quarter 2011 Housing Supply: Normal residential real estate markets typically have a six to seven month supply of housing inventory. Based on 1st quarter 2011 absorption rates, current supply levels for detached properties are at, or below, normal market levels up to the $700,000 plus price ranges. Current supply levels for attached properties are at, or below, normal market levels up to the $300,000 plus price ranges (see figure 7). Read more
San Diego Real Estate Market 2011
San Diego County Residential Real Estate Market Analysis: (Part 2 of 3)
The following is a market data summary of detached and attached properties as reported by the San Diego County MLS system. The data includes all zip codes in San Diego County. * All 2011 data in figures 1 through 4 will be projected based on market data taken from January through March as reported by the San Diego County MLS system. All projections discussed in this analysis will be updated throughout the year in subsequent quarterly reports. ©2011 By Mark A. Melikian California Certified Residential Appraiser appraisals@san.rr.com P.O. Box 3051 Del Mar, California 92014 858-793-9339
Market Overview: The mean sold price for a housing unit in San Diego County peaked in 2007 at $621,675. The mean sold price in 2009 decreased to a low of $399,200, a 35.8 percent decrease from the market peak in 2007. *In 2011, the projected mean sold price is $407,720, which would represent a 2.1 percent increase from the 2009 mean sold price and a 34.4 percent decrease from the market peak in 2007 (see figure 3). Read more
San Diego County Real Estate Market
San Diego County Residential Real Estate Market Analysis: (Part 1 of 3)
The following is a market data summary of detached and attached properties as reported by the San Diego County MLS system. The data includes all zip codes in San Diego County. * All 2011 data in figures 1 through 4 will be projected based on market data taken from January through March as reported by the San Diego County MLS system. All projections discussed in this analysis will be updated throughout the year in subsequent quarterly reports. ©2011 By Mark A. Melikian California Certified Residential Appraiser appraisals@san.rr.com P.O. Box 3051 Del Mar, California 92014 858-793-9339
Market Overview: The data provided analyzes residential real estate sales beginning in the year 2000, which is used as the base year. The number of sold listings in San Diego County peaks in 2003 at 42,746 units and decreases through 2008 to 23,972 units. *The 2011 projection shows the total number of units sold for the year will be 27,012 (see figure 1).
San Diego real estate market
Figure 1
Market Overview: The monthly absorption rate (number of units sold in a given month) will mirror the trend we see in the number of sold listings. The peak monthly absorption rate occurred in 2003 with 3,562 units selling per month. In 2008, the monthly absorption rate decreased to a low of 1,998 units. *The projection for 2011 shows a monthly absorption rate of 2,251 units (see figure 2).
San Diego housing market
Figure 2
See tomorrow’s post for part two of this article.