San Diego Housing Problem is Getting Worse
San Diego housing market
The number of delinquencies is a dynamic that obviously changes relative to the environment. I apologize for not providing some insight into the hard numbers that your above post requests. Where are we in this process and how much of the problem has already been written off? Is it getting worse, better, or going to be the same and for how long? Read more 
San Diego Home Prices
San Diego California home prices
In yesterday’s San Diego Union Tribune the main story in the business section was titled “County and state home prices facing a ‘double dip’ They’re up from last year, but heading downward, Zillow and Realtors report“. I give credit to the Union for reporting the facts, but to toot my own horn, here is part of what I said back in this blog on 5-1-10, in a post titled San Diego California Home Prices … Worst is Over : “I believe the government tax credits (which may be mostly speeding up sales that would have occurred normally) and the fact that a huge number of loans were due to have their first adjustment this year, could cause a double dip in San Diego housing values.”
My point is that if you want a good indication about the current and future San Diego California home prices, you would be wise to get a free subscription to this blog.
Here are some facts from the most recent Seattle-based Zillow company report:
- San Diego and four other California markets were the only ones nationally that posted price declines in the third quarter after five quarters of increase.
- Zillow figures San Diego values are now 31.1 percent off their peak of $538,100 set in September 2005.
- Zillow’s figures for San Diego in the third quarter showed an overall home value of $370,600, up 4.2 percent year over year but a 0.7 percent decline from the second to the third quarter and 0.3 percent decline from August to September.
- Nationally, home values declined 4.3 percent year over year and 1.2 percent quarter over quarter. They have declined for 17 consecutive quarters and are down 25 percent their peak.
- 23.2 percent of single-family homeowners nationally owe more than their homes are worth.
Trapped San Diego Homeowners
Bob Schwartz, San Diego California Realtor
Seems that all attention is paid to people who can’t afford to buy a home, even at the current depressed prices.
What about the large number of current San Diego homeowners with great credit, with the ability to comfortably meet a mortgage payment two or three times the one they are now paying? There are thousands, maybe millions, of homeowners who have outgrown their current homes, either physically or socially. They are held back by the drop in value of their present home. They have so much negative equity that they just can’t scrape together the huge pile of cash they would need to make a move. They sit quietly out of the market, making their monthly payments. They are the potential stimulus the economy needs to tap.
Was There A San Diego Real Estate Recovery?
Bob Schwartz San Diego Realtor
There has not yet been a recovery in the San Diego real estate market!
There was a short head-fake provided by trillions of dollars in taxpayer funds that were thrown at the real estate market by both the Federal government and the fiscally astute, California legislature. Read more
San Diego Housing Market Factors
A few San Diego real estate factors to consider:
- First the shadow inventory is massive, investor are not normally long term holders so additional inventory in the near future,.
- Increasing number of people per housing unit now and in the future.
- Changing sentiment that housing is not cracked up to be such a great holding after all.
- The costs of both purchasing & selling a home are substantial costs often not fully considered.
- Many have found that home ownership can be very expensive when you add up the maintenance, property taxes and insurance.
San Diego housing market
San Diego Home Values Double Dip
San Diego California real estate market has been improving & many are saying a bottom is in place. However, the San Diego real estate market activity after the end of the federal tax credit, indicates that San Diego home values have actually entered into a double dip down!