San Diego Condominium Sales Price Appreciation
San Diego California resale condominium appreciation
In the table below, www.brokerforyou.com looked at selected San Diego neighborhoods that
had 10 or more closed sales in August 2008 & August 2007.
The sales data was compiled by DataQuick Information Systems & published in the 9-28-08 edition of the San Diego Union-Tribune.
One should keep in mind the above chart is just for a one year period (August 2007 vs. August 2008) and
San Diego home values topped out around the Summer of 2005!
Lastly, I would note that these figures do not take into account the very prevalent seller concession (usually payment of thousands in the buyer's closing costs) necessitated by an ultra strong buyers market place.
A few of our related prior posts were:
San Diego Real Estate Market … What Did You Expect?
San Diego Real Estate – 5th Largest Decline Through July
San Diego Home Sales Up … San Diego Home Median Price Drops
Southern California Home Prices Drop 34% in August
#1 Key To Purchasing Real Estate in the San Diego Market
San Diego California Home Sellers Lose Big
The San Diego California Real Estate Great Depression
Yale Professor … House Price Decline Could Be Worse than Great Depression
Survey Says Home Values Must Fall Another 14%
Jumbo Financing and the Impact on The San Diego Real Estate Market
Believe the local San Diego ‘experts’ that subprime delinquencies are slowing?
More homeowners than ever are selling at a loss!
San Diego County Foreclosures up 125% from 2007
CALIFORNIA NEW HOME CONSTRUCTION FALLS 62%
According to the latest data from the California Building Industry Association (CBIA), new home construction starts in California fell 62 percent in January. Chief Economist Alan Nevin said the drop in new residential projects breaking ground coupled with the ongoing push to move existing inventories, carry the potential to produce a "severe shortage" of new housing once the real estate market rebounds.
Mr. Nevin also said “We have rarely had a situation where interest rates are low and the California economy is stable and yet there appears to be a hesitancy among potential home buyers to make the critical purchase decision. We do know, however, that within the near-term future, the market will decide, often en masse, to begin the home buying process, but this time there will be a severe shortage of new product. On balance, we foresee a critical housing shortage evolving throughout California.”
Naturally, I personally would like Mr. Nevin to be correct, but wonder if a "severe shortage" in new new California housing will occur in the face of these factors:
A. In San Diego, and many other California cities just about one in ten of the average households can afford the average home. Without adjustable loans, 100% 'no doc' loans, etc., even at today's lower values, where will the qualified home buyers come from?
B. With 2008 set to see record home foreclosures, a lot of housing supply is being created.
C. With people waking up to the realization that California housing values can decline, combined with the passing of the 'Baby Boom' house buying generation, California housing just might lose its 'best ever investment' status and return to the traditional view of a place to live and raise your family.