San Diego Real Estate – A Bottom … Not A Reversal
When the San Diego real estate market hits bottom, it will be just that, a bottom, not a reversal. Don’t believe that home prices will spike up and shoot back up to pre-bust levels any time soon! I find that highly doubtful even if the economy were healthy in other sectors because who is going to fuel this reversal? Will it be the people who have foreclosures and short sales on their credit history, or another group of salivating sub-prime buyers?
Credit is tightening up to the point that home buying is truly back to where you actually have to put 5 to 20% down and have a decent credit rating. That will restrict the pool of available buyers considerably, which will prevent another ridiculous up-ride on the home price roller coaster.
The “bottom” will be the new median home price, according to what the local marketplace and income levels dictate, with modest year to year appreciation.
Until the ‘real’ bottom is reached in the San Diego real estate market, expect many false upward spikes driven by people looking at only one set of data and incorrectly timing the best time to buy.
Related prior posts:
#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
Believe the local San Diego ‘experts’ that subprime delinquencies are slowing?
San Diego County Foreclosures up 125% from 2007
Jumbo Financing and the Impact on The San Diego Real Estate Market
Another Look at the June Rise in Pending Home Sales
San Diego’s Cost Of Living
San Diego cost of living
According to the Council for Community and Economic Research, San Diego’s cost of living is 32.3 percent above the national average. Among 22 major metro areas, the only places with a higher cost of living are San Francisco (62.1 percent above the national average), Los Angeles (36.2), Washington D.C. (37.9), and Manhattan (118.0). San Diego compares poorly with other high-tech areas such as Austin, Charlotte, Orlando, and Raleigh, whose living costs are all below the national average. San Jose (Silicon Valley), at 55 percent above the national norm, is the most expensive of the tech centers.
San Diego Little Italy condos
San Diego Real Estate – Time To Buy
Is now the best time to purchase a San Diego home?
San Diego housing
Compelling Reasons to Buy Now:
- Lowest mortgage interest rates in over 30 years
- High supply of inventory from which to choose their next home
- Sellers willing to make many more concessions than in a more balanced market
- Low home prices
- Lower property tax rates
- Deals from distressed properties in many areas
- Government financial incentives for first time homebuyers
- Income tax refunds for cash for down payments
- Los Angeles California attorneys
San Diego City in Debt … Increases $100K Salaries
San Diego city councilman Carl DeMaio released a report yesterday that showed San Diego city employees earning $100,000 or more in salaries is 12% of all workers. More amazing is the report's finding that the number of city employees earning $100k or more increased by 44% from just last year!
These facts are hard to comprehend in light of the fact that the city has a projected $50 million deficit and is currently considering closing libraries, recreational facilities, raising fees and increasing the sales tax. San Dieho home sales
San Diego City Attorney Wants City To Be Foreclosure Sanctuary
San Diego City Attorney Michael Aguirre, today, filed a lawsuit against Bank of America Corp and its Countrywide unit to prevent the mortgage lenders from foreclosing on homes in his city, which he wants to make into a "foreclosure sanctuary."
Attorney Aguirre said: "The Countrywide executives who originated these subprime loans were engaged in a massive fraud on homeowners, borrowers and investors, They enriched themselves by over $1 billion."
TECH-SAVVY SAN DIEGO
The Scarborough Research study measured the concentration of technology users with a wide range of high-tech habits, and found San Diego to be #4 on the list for most tech-savvy cities. As reported in early May 2008, about ten percent of San Diegans made the cut, ranking above the national average of six percent. The study queried high-tech habits such as blogging or watching cell phone videos.Seattle and San Francisco finished lower in the top 10, with about 9 and 8 percent of Seattle and San Francisco residents, respectively, qualifying as savvy.Ranking as the top three cities in the list were Austin, Texas, Las Vegas, and Sacramento. San Diego downtown real estate
San Diego State University Receives Largest Donation Ever
School of Accountancy to be Named for Former Dean
A $10 million gift by the wife of a former dean will result in the first named school in the 111-year history of San Diego State University. Among the largest donations ever made to SDSU, the gift by Gertrude Lamden honors her late husband, Charles Lamden, by naming the university's nationally recognized school of accountancy for him. San Diego County real estate agents
photo: Jared David Schwartz SDSU Graduation 2008
The Steady Rise in San Diego Unemployment
San Diego’s unemployment rate continues to be lower than California and the United States as a whole. The bad news is that it’s been on the rise since March. According to the San Diego Workforce Partnership, in March, San Diego’s unemployment was at 4%, the lowest all year, compared to 5.1% in California and 4.5% in the United States. By July, San Diego’s unemployment stood at 4.8%, while California was at 5.5% and the United States was at 4.9%. National City has been hit the hardest. Most recently the city’s unemployment rate was 9.6%. Imperial Beach’s unemployment rate was at 7.9% and the lowest rates around San Diego County were Valley Center (2.2%), Del Mar (2.3%), and Poway (2.8%). San Diego CA real estate