San Diego Real Estate Value Drop
San Diego real estate values took a huge hit since the summer of 2005.
It’s been a horrible San Diego California real estate market; be glad you are not a homeowner in Las Vegas!
real estate value declines
Clairemont real estate
San Diego October Condo Prices
In the table below, www.brokerforyou.com looked at selected San Diego neighborhoods
that had 10 or more closed condominium sales in October 2008 & October 2007.
One should keep in mind the above chart is just for a one year period (October 2007 vs. October 2008) and
San Diego home values topped out around the Summer of 2005!
Lastly, I would note that these figures do not take into account the very prevalent seller concession
(usually payment of thousands in the buyer's closing costs) necessitated by an ultra strong buyers market place.
Related prior posts:
San Diego Real Estate Market … What Did You Expect?
San Diego Real Estate – 5th Largest Decline Through July
San Diego Home Sales Up … San Diego Home Median Price Drops
Southern California Home Prices Drop 34% in August
#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
Yale Professor … House Price Decline Could Be Worse than Great Depression
Survey Says Home Values Must Fall Another 14%
Jumbo Financing and the Impact on The San Diego Real Estate Market
Believe the local San Diego ‘experts’ that subprime delinquencies are slowing?
More homeowners than ever are selling at a loss!
San Diego County Foreclosures up 125% from 2007
San Diego Home Values Drop 14.7% in 3rd. Quarter
Zillow Real Estate Market Reports just released a report that shows home values in San Diego decreased -14.70% in the third quarter of 2008, compared to the third quarter of 2007. This San Diego value loss was 5% greater than the national home value drop for the same period.
Prior related posts:
San Diego Condo Sales Price Appreciation
San Diego Real Estate to Drop 20% in 2009?
One in Five Homeowners has Negative Equity
Real Estate Conditions … Housing Markets Are Local
Home Value Index – Largest Drop In History
California Home Foreclosure Filings fall 32%
San Diego Real Esate Sales Increase
San Diego Condominium Sales Price Appreciation
29% of Homeowners Have Larger Mortgage Than Home’s Value
Real Estate Record Home Price Declines
San Diego Real Estate – 5th Largest Decline Through July
San Diego Real Estate to Drop 20% in 2009?
With the industry talk of a possible San Diego bottom to the real estate market, is now the time to buy San Diego homes? It’s very possible they are correct! Who can really say? Everyone likes to be optimistic. With three years of a falling San Diego real estate market and home values that at 40 to 50% off their 2005 market highs ,we might see a market turn in 2009.
Sadly, I have my personal doubts on a significant San Diego real estate market reversal in 2009. I sincerely hope I'm wrong on this, and there is, in fact, a rebound next year.
Though it's not talked about much, there is another huge number of homes that may be newly heading into foreclosure which may accelerate the housing value decline. (There is a large number of regular adjustable loans resetting next year – for more information read: (Jumbo Financing and the Impact on The San Diego Real Estate Market.) If this occurs in the numbers forecast, San Diego home values could be down another 20-30% in 2009.
So, is it correct that if you buy today and plan to hold for at least five years you'll come out way ahead? Being just a local San Diego real estate broker and not an economist, I really cannot answer this question with any conviction. All I will say is that my three decades of real estate experience, and knowledge of the San Diego housing market, I can assure my clients that I will endeavor to achieve the best possible value, buying or selling, San Diego homes.
Prior related posts:
San Diego Real Esate Sales Increase
San Diego Condominium Sales Price Appreciation
29% of Homeowners Have Larger Mortgage Than Home’s Value
Real Estate Record Home Price Declines
San Diego Real Estate – 5th Largest Decline Through July
Southern California Home Prices Drop 34% in August
San Diego California Home Sellers Lose Big
The San Diego California Real Estate Great Depression
Yale Professor … House Price Decline Could Be Worse than Great Depression
Survey Says Home Values Must Fall Another 14%
California Home Sales Up 43.4% – Home Prices Down 40.3%
Home Value Loss … Homeowner Perception vs. Reality
San Diego CA real estate agents
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
Southern California Home Prices Drop 34% in August
MDA DataQuick real estate information service just reported that Southern California home sales were up 9.1% from a year ago, but the median home prices were down34% from a year ago.
The report showed San Diego median home price in August was $350,00, a 26.3% drop from a year ago. The only bright spot for the San Diego real estate market was a slight sales up-tick of just 1.4%. A few of our prior posts on the San Diego real estate market were:
#1 Key To Purchasing Real Estate in the San Diego Market
Yale Professor … House Price Decline Could Be Worse than Great Depression
Cramer Calls the Bottom in Real Estate Market
Survey Says Home Values Must Fall Another 14%
California Home Sales Up 43.4% – Home Prices Down 40.3%
More homeowners than ever are selling at a loss!
The real estate Web site Zillow.com has reported that in the 12 months that ended June 30, nearly 25% of all homes sold nationwide fetched less than sellers originally paid. Other interesting facts from this report showed:
A. In Merced, Calif., 63% of homes sold during the past 12 months brought in less than what the owner paid. Prices there have fallen 40% over the past 12 months and 56% from their 2006 peak.
B. About 63% of sellers in Stockton, Calif., lost money during the same period, 60% in Modesto, Calif., 55% in Las Vegas and 38% in Phoenix.
C. In Merced, 74.9% of sellers took a loss when they sold during the three months ended June 30 compared with just 28.7% during the same period in 2007.
What happened to all the home buyers in 2006 who thought they had gotten a great home buys when compared to the 2005 homes sale prices? From the same Zillow report we can now see the real answer to this question:
In Stockton, Calif., 2006 buyers now owe a median of nearly $171,000 more than their homes are worth. In Salinas, Calif., 2006 buyers now have median negative equity of $161,000, and in Merced, the figure is nearly $160,000.
Though not in in the report, I would venture to say that one would be hard pressed to find any 2007 home buyers whose homes are worth more today, that what they paid! San Diego California investment property sales
Home Foreclosures Up 48%
Foreclosure listing service RealtyTrac Inc. reported foreclosure filings last month were up nearly 50 percent compared with a year earlier. Nationwide, 261,255 homes received at least one foreclosure-related filing in May, up 48 percent from 176,137 in the same month last year and up 7 percent from April.
According to the RealtyTrac report, one in every 483 U.S. households received a foreclosure filing in May, the highest number since RealtyTrac started the report in 2005 and the second-straight monthly record.
Foreclosure filings increased from a year earlier in all but 10 states. Nevada, California, Arizona, Florida and Michigan had the highest statewide foreclosure rates. San Diego Realtors