San Diego Real Estate …The Coming Up-tick
For San Diego real estate, or for that matter perhaps all of California real estate, sales activity is about to pick up. Yes, the stars seem to be aligned for real estate buyers throughout Southern California. Will this be the long-awaited bottom to the real estate bust? Are real estate prices about to spike upward? Is now a once-in-a-lifetime opportunity to purchase San Diego real estate?
Traditionally, the season from mid-March through September is the busiest time for real estate activity. Combine this with long-term fixed mortgage rates around 5%, home prices around 40 to 50% of their 2005 values, a very generous federal $8000 tax credit for first-time buyers and an unbelievable California state new home buyers tax credit of 5% or $10,000, whichever is less, and you now have a potential to see double-digit increases in Southern California real estate sales.
Now, add to the above positive factors the new California law, called California foreclosure prevention act, which becomes effective May 21, 2009. This new law, which foolishly interferes with the free market, extends the normal foreclosure. They now take an additional 90 days… So in essence, just at our seasonally strong sales time, this new state law will dramatically affect the amount of new foreclosures coming on the market. The normal supply of foreclosures will be skewed, causing the Soundbite news media to declare a huge drop in foreclosures and available housing inventories.
Once the additional 90 day for the extended foreclosure period works it way through the system (August 21, 2009), sometime in late September or early October, the news media will again be reporting an uptick in foreclosure activity.
In conclusion, if you are planning on selling San Diego real estate, now may be a very opportune time. If you are planning on buying San Diego real estate to live in, and plan to hold onto it 10 or more years, now may also be an opportune time to get into the market. Personally, with that said, I believe the real estate activity update we are about to experience will most likely be short-lived, and starting in September or October, we will see a continuation of declining real estate values in San Diego that may very likely extend until the first quarter of 2010. San Diego real estate
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