This morning, the Commerce Department released its monthly report on new home sale. The median price for a new home was down 7.5 percent from a year ago, to $225,700, marking the steepest monthly price drop since December 1970.
Finally, with the release of this dreadful news, many analysts whose views were that this was just a mild, short term phenomenon are now predicting that the disappointing numbers are likely only be the start of a continued decline in the housing sector that could last several quarters.
Mike Schenk, with the Credit Union National Association said of today's report: “Anybody that’s expecting a turnaround in housing anytime soon is going to be disappointed.”
Personally, for San Diego, I would not be surprised if the downward trend continues well into 2009 or 2010. A few of our prior posts on new home sales were: $100,000 Cuts on New Homes Nationwide!, Employment Report Negative Surprise . . . for Some, U.S. Housing Market New Homes Sales Increase 2.8%, Times of London on San Diego Real Estate Bust, #1 Cause of San Diego Housing Value Decline, New Home Sales Drop – Causes Stock Market Tumble, 4 Sure Signs of A Real Estate Market Top [tags]new home sales, San Diego real estate market, home sales, real estate sales[/tags] San Diego real estate agents
There is no bubble. That was invented by the media. Prices have been out of control for years and a correction was due. It is a great time to buy real estate. Millionaires are made by buying when everyone else is selling.
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The market is not easy to predict, if it was, we’d all be buying low and selling high. Here are some things to consider…..
The prices have been dropping for the past year. Depending on where you are, it may continue.
The fact is getting credit is more difficult, and many people are losing their homes.
If you wait a bit more, the market will be very good for buyers, and you will get a better deal. Having said that, If you buy a house today, you are already getting a better deal than you would have a year ago.
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The top of the San Diego California real estate market was the summer of 2005. Most home values are now off by double digits!
I think we are only half way through this decline. 2010 should be the bottom. San Diego bail bonds
Homeowners should be prepared to ride out the current fluctuation, because in the long run values should continue to escalate.
Alex
Tijuana Dentist
It’s just surprising that so many people with the clear signs that were present in 2004 and 2005 didn’t say that the San Diego real estate bubble was about to bust
Bonnie
San Diego County Cosmetic Surgeons