Trapped San Diego Homeowners
Bob Schwartz, San Diego California Realtor
Seems that all attention is paid to people who can’t afford to buy a home, even at the current depressed prices.
What about the large number of current San Diego homeowners with great credit, with the ability to comfortably meet a mortgage payment two or three times the one they are now paying? There are thousands, maybe millions, of homeowners who have outgrown their current homes, either physically or socially. They are held back by the drop in value of their present home. They have so much negative equity that they just can’t scrape together the huge pile of cash they would need to make a move. They sit quietly out of the market, making their monthly payments. They are the potential stimulus the economy needs to tap.
California Home Price Outlook
In the April 2010 issue of Money magazine, they produced a table projecting where home prices may be at the end of the year. We took the home values from six California cities in this data table and produced the graph below. The good news for San Diego homeowners is that they projected San Diego’s median home price to just decline -0.3%.
California Home Price Outlook
Orange County California real estate attorneys
San Diego Home Values Jump Up 13 percent
San Diego homes for sale
In a just released report, MDA DataQuick showed that from January 2009 to January 2010 the San Diego median home price increased 5.6 percent, to $322,000. But, the real news is that on a year-over-year basis, median home price was up by 13 percent! As for the number of homes sold in San Diego, year over year, the amount was off 0.3%.
To me, a 13% San Diego home appreciation year over year would be more believable if it was negative 13%! It seems that in San Diego, the homes under $400,000 are selling quite well. The mid to upper end homes are are still languishing. Many investors are getting back into the market usually with all cash offers on lower end homes that can show a ‘better than CD ‘ rate of return. Other factors to consider are that the government buyers incentives end on April 30 and this, just like the Cash for Clunkers program, may be pulling from later in the year sales. If this is the case, we could see a marked slowdown starting in May. Read more
San Diego Home Prices Rise
San Diego home sales price change for December 2009 vs December 2008. The data is for the median prices as published by the San Diego Union Tribune. The selection of San Diego neighborhoods and production of the graph was by www.websitetrafficbuilders.com.
San Diego California home prices
San Diego Home Prices Increase
San Diego home prices
The S&P/Case-Shiller Home Price Indices show San Diego home prices rise 0.4% in November as well as a 0.4% year over year price increase. Although this is a very small increase, it’s still an increase! This is significant, because the latest Case-Shiller report also showed that U.S. home prices fell in November for the first time in seven months. Read more
U.S. Home Sales Prices
They say a picture is worth a thousand words. So for all of you who believe 2009 was a year of base building in real estate home values I give you the S&P Case-Shiller data on home prices for October 2009 in graphic form. The graph is courtesy of Tim Iacono who writes the blog ‘The Mess That Greenspan Made’ (http://themessthatgreenspanmade.blogspot.com/).
home sales prices
The only good news from this chart is that San Diego home prices had one of the smallest declines in value.
Poway California home sales
San Diego Home Sales and Home Values Improving
San Diego home sales
Both San Diego home sales and home values are improving according to La Jolla- based MDA DataQuick. Home sales in San Diego County rose by 17.8 percent in November, compared to the same month a year ago, while prices rose by 6.6 percent.
A total of 3,148 homes sold in November, up from 2,673 for November 2008, while the median price of a home in San Diego County last month was $325,000, up from $305,000 in the same month a year ago.
Sorrento Valley California real estate
San Diego Home Prices – The Key To The Future Trend
San Diego home price
San Diego home prices: will they improve, stabilize or continue to erode? Anything can happen especially when you consider there are potentially another 8 million homes that could be foreclosed on in the next 4 years. However, if you look at the current national average home price it is back to around 2003 levels, which is before homes values began to increase by double digits, the norm being 3-5% year prior to this.
The key to housing stabilization/improvement is job creation. Once the unemployment stabilizes and reverses, home prices will level out. The longer it takes for unemployment figures to improve, the lower home prices will go.
San Diego investment property
San Diego Real Estate … Time to Buy?
As San Diego home values plummet. The industry and almost all media outlets are proclaiming “It’s the time to buy! “ But, keep in mind this is almost an exact reply of the ‘news’ that was being proclaimed last year, and two years ago, and three years ago etc. Why, even in 2006 after the downturn was well under way, the ‘Indusrty’ line was “It’s a normal pull-back, creating a great buying oppurnity.”
Lot’s of flippers and investors were buying all through 2007. They are in deep trouble right now. Look at the graph below which we originally published on 9-26-09.
San Diego home prices
It may be that San Diego home values need another 10%-20% drop before a real bottom is reached. In a depression, home value of homes could fall 50% from where they are today. At least, that’s what happened in the great depression.
It is very tempting to rush out and buy investment properties. But it seems it’s still too early for that.
Chula Vista real estate
San Diego August Home Sale Prices
San Diego real estate median sales prices in August for single family homes.
The San Diego home price data was derived from data published by the San Diego Union Tribune and the graph were produced by www.websitetrafficbuilders.com
San Diego California home sales