San Diego Condo Prices Up 30% – A New Real Estate Bubble Forming?
San Diego Condo Prices – Another Bubble?
San Diego California single-family median resale home prices hit $432,000 in March, a rise of 5 percent from February, and nearly 19 percent from March of 2012.
Condos and townhomes saw an even higher increase in the median price – $285,000, which is a jump of 14 percent from February, and 30 percent from March of last year.
Normally, single-family home prices should increase 2-3% a year tops plus inflation… yet we’re seeing 20-30% increases or more? Home values are halfway back to where they were pre-2007! Read more
San Diego Negative Home Equity
What is not talked about is that Fannie and Freddie loans could get approved with DTI levels as high as 63%. Typically a borrower would need some other strong factor such as high FICO or 6-8 months in reserve. Nevertheless, people are not walking from their homes just because they are upside down. Like most things in life there is rarely one answer, rather a multitude of factors.
Get ready for the next wave of foreclosures, just months away. This new wave of foreclosures will be prime mortgages on upper end homes. San Diego real estate agent
San Diego Homeowners with Underwater Loans
Besides… who needs a credit score in the next 4 years anyway? Many people approaching 800 on their FICO are still being denied new credit card offers and have no desire to purchase any real estate until the dust settles.
Many strongly believe that underwater homeowners should walk away en masse unless their true desire is to stay put for the next 15 to 20 years. Rip the band-aid off!!! San Diego Realtor
San Diego real estate – 2009 the Option ARM resets
Many local mortgage lenders feel that San Diego & Southern California were the prime locations for the adjustable Option ARM loans. Now, just when many believed the mortgage crisis was winding down, San Diego real estate will be facing another major obsticle.
Our first post on this problem was San Diego Real Estate … The Coming Next Wave of Foreclosures, published on 7-17-08. It took a little while, but now the major media outlets have picked up on this problem. San Diego Realtors
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San Diego Real Estate – It Could Get Really Ugly
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- Bubble Markets Inventory Tracking: More On the Purchase
- San_diego San Diego’s local economy was largely real estate driven in the early part of the century. The real estate bubble fueled an economy that fed real estate agents, mortgage brokers, and construction workers, and fed off itself. …
- VANCOUVER, B.C. – January 5, 2009 – The record-breaking real estate market cycle in Greater Vancouver, longer than normal at seven consecutive years, ended in 2008 amidst global economic challenges. The change brought relief from rising …
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- San Diego Real Estate Bust of 1945? by bob711 — published on December 10th, 2008. This is a must watch video, with a lot of solid points. This real estate bust is NOT fair! Already the California legislature is considering a four month …
- Number 2, it is typically still ok to buy at the peak of a "normal real estate cycle." Recall a few years back during the bubble peak a lot of folks were using the prior cycle and said, "well, we bought at the peak then and we did ok. …
San Diego Real Estate Appreciation Up 100%+
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- It s what you haven t heard or seen much of this year that defines what the economy has meant for the Wilmington area. The sounds of nail guns and drills and the whack of hammers have all but disappeared in many parts.
- But similar to one-time boomtowns like Las Vegas and Sacramento, the presence of so many real estate flippers looking for a hefty profit worsened the real estate bust when it finally came. "It's the nicest subdivision in Chiloquin," …
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San Diego Home Values Drop Over 30%
San Diego Real Estate – Recovery or Collapse?
San Diego Real Estate Market … What Did You Expect?
San Diego real estate is very scarce. Most of San Diego open space is owned by the military/Government/parks. So, San Diego real estate can never really go down much in value. If you don't buy a home in San Diego now, the rising prices will never let you purchase as good a value.
Act now! It's 2004 and you can still buy your San Diego home with no down payment, no need to prove employment, the option to pay or not on an irregular basis, below market interest rates for the first few years, monthly mortgage payments low enough that it will cheaper to buy a home than rent an apartment.
Already own a San Diego home? Why not get a home equity loan 25% more than the home is worth and go on that dream vacation and you can buy a speed boat on your return.
The San Diego media 'financial' commentators were all on board the real estate hype train;after all how could they say anything that would upset their real estate developer advertisers/sponsors?
What did the Government expect would happen with these types of enticements? The newspapers, media 'talking heads' Realtors, banks, appraisers, all fed the fire. Anyone who would even question the San Diego housing market excesses was immediately ridiculed and instantly labeled a 'bubble head' for their lack of 'true vision.'
The truly sad part of this lament is the fact that in late 2005, even after the San Diego month after month real estate sales figures were off double digits, and after most real estate developers were offering huge cash incentives, the main-stream media still did not raise any red flags. Instead it was 'just a return to normal' or “a great time to buy without the pressure of multiple offers."
So, for those who still blame this all on sub-prime loans, take off your rose-colored glasses and maybe you'll see that the real reasons were much more complex but founded on greed and the herd instinct. If we learn anything from this, it should be that basic economic principals cannot be ignored. When the siren call of a 'new paradigm' is again sounded, heed the lesson of the great 2005 San Diego real estate bubble.
A few prior related posts:
San Diego Home Sales Up … San Diego Home Median Price Drops
Government Bail-Out – Risk & Reward
Southern California Home Prices Drop 34% in August
#1 Key To Purchasing Real Estate in the San Diego Market
The San Diego California Real Estate Great Depression
Yale Professor … House Price Decline Could Be Worse than Great Depression
San Diego Home Sales Up … San Diego Home Median Price Drops
CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported home sales increased 56.7 percent in August in California compared with the same period a year ago, while the median price of an existing home fell 40.5 percent.
For San Diego real estate, C.A.R. reported that the August median home price was $375,090, off 2% from July.For the year-to-date one year period the San Diego median home price was down 37%. The good news was that San Diego existing home sales for the year-to-date period was up 60.5%.
The San Diego August 2007 median home price was $595,070. This was $219,980 less than today's median home price.
“There has been no meaningful change in the level of activity since late last fall,” said Ian Shepherdson of High Frequency Economics. “The NAR estimates that 35 to 40% of all sales are of distressed property, so underlying private activity is weaker than the headlines, and there is little sign of imminent improvement.”
I believe this huge jump in San Diego existing home sales shows that WITHOUT GOVERNMENT INTERVENTION, when home prices in an open market look attractive, sales will increase! San Diego home sales