San Diego County Median Home Prices Slowly Climb

Good news for the over-all San Diego market. The countywide medium home price increased again in May. According to the DataQuick the Median Home Price hit $295,000in May, a $15,000 rise since January and $5000 in May.

Since January, three out of five areas of San Diego County continue a modest recovery. While overall prices are still down 22.6% from a year ago, Buyer activity remains steady.

While the number of "All Homes and Condos" sold countywide decreased by 133 in May compared to April, the number of "New Homes and Condos" increased by 19. Most of May’s increases were seen in higher valued condo sales, which increased from $182,000in April to $199,000 last month.

For example, while Santee showed a 4% decrease in resale house prices from April, the New Home and Condo sale showed increases from April--resale condo prices rose 4% along with new home sales 28%.

While the number of foreclosures decreased from 43.1 percent of all resales in May compared to 51.1 percent in March, some believe the 90 day foreclosure moratorium that went into effect on 6/15/09 along with banks attempting to modify loans may be producing a temporary reduction in the number of foreclosures.

"DataQuick analysts suggested that home prices may have bottomed out, but caution that price depreciation may be hitting more affluent neighborhoods because of mortgage defaults and impatient owners of higher-end homes who need to sell in the current market," according to Ned Randolph, San Diego Business Journal.

The number of homes sold at prices greater than $500,000 has gradually increased from 18.8 percent in March to 20.5 percent in April to 23.1 percent in May.

However, with the reduction in the number of homes available down to about two months supply, demand should continue to push prices slowly upwards.

--Virginia Hall
Coldwell Banker Residential Brokerage

Bad News Good News--Santee Housing Market

The bad news always seems to be first, when the media talks about the housing market. While bad news may sell more, a lot depends on how you are looking at it--half full or half empty.

The statistics for April emerged yesterday. While the job layoffs and economy is definitely slowing the housing market return, some areas of San Diego are still sputtering along showing signs of revival. From January until April home prices have slowly climbed in the East County.

While year over year home values have shown a 26.5% decline from April 2008 to April 2009; although, since January the medium home prices in the East County have actually increased 4% from $240,000 in January 2009 to $250,000 in April 2009. Other signs of recover include the number of home sales increased 51% year over year from 323 in April 2008 to 488 in April 2009.

Like several areas of San Diego, Santee home prices have also risen since January the medium home prices have risen from $270,000 to $285,000 in April, over 5% increase. However, again looking at it year over year, from April 2008 to April 2009, it has declined 20.2%. The number of homes in Santee remained steady, from 58 in April 2008 to 59 in April 2009.

As I mentioned in What Happened to All the Houses on the MLS?, with the declining inventory we should continue to see the housing prices slowly recover. If you have been waiting for the bottom to hit, we may have already seen it. So with the interest rates low and all of the buyer incentives mentioned in Uncle Sam Giving Money Away to First-Time Homebuyers and Buy Today with Recession Proof Plans now is the opportune time to buy.

--Virginia Hall


As I mentioned in What Happened to All the Houses on the MLS?, with the declining inventory we should continue to see the housing prices slowly recover. If you have been waiting for the bottom to hit, we may have already seen it. So with the interest rates low and all of the buyer incentives mentioned in Uncle Sam Giving Money Away to First-Time Homebuyers and Buy Today with Recession Proof Plans now is the opportune time to buy.

--Virginia Hall

San Diego Home Prices Turn the Corner or Just a Blip?

According to the San Diego Business Journal, the San Diego Association of Realtors reports the Medium housing prices may have actually turned the corner. Data gathered from Sandicor, the multiple listing services, show housing sales up 60 percent from a year ago, along with a rise in prices from November to December 2008. Resale house prices rose 2.6 percent to $349,450 and a 2.6 percent in condos to $200,000. This does not take away from the fact that housing prices overall dropped 30% from year to year and condos dropped 36%. So we still have a long ways to go.

However, Sellers with homes in good conditions are getting multiple offers starting to drive prices upwards. So I am hopeful, yet wary, the housing prices has hit the bottom. While I think that the housing market is stabilizing, the unemployment rate is still affecting the economy. According to San Diego Metropolitan UpTown Examiner and Daily Business Report the unemployment rate has risen from 4.9 percent in October 2007 to 6.9 percent in November 2008. With the economy still trying to recover, we may still have another year before our home prices actually begin to rise again due to short sales and foreclosures.

So if you missed the opportunity to buy a house in the last few years because the housing prices were too high, now is your chance. The housing prices have rolled back to 2003 prices. How long will this last? Or will the prices drop further? Only those who can foretell the future will know. Why risk missing the boat again? It is time to buy. There are signs that the economy may improve this coming year and you may miss the boat.

--Virginia Hall



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