The data from February of 2009 to February of 2010 shows the median home price in the North County San Diego area, per square foot, rose 11.5% for single family homes and 20.4% for condos. The bulk of the sales in our market occured the “Spring Market” which is April through September. Since September, we have not seen enough data to support an increase in prices.
We are about to hit the Spring Market again, and it will be something to watch. With the Federal government changing the guidelines for FHA loans, which handle about 40% of our loans, they will not be propping up real estate loans. Tax credits for homebuyers ($8,000 for first time buers, and $6,500 for return buyers) will disappear if you are not in escrow by the 30th of April. The tax credits will probably play a small part in boosting the Spring Market.
With all these variables, it will be intersting to see what the market will do this year…
The San Diego Union Tribune read yesterday that home prices in the county have dropped by 23.2% in the last year. We were hit hard since we had seen the biggest boom, and now we’re getting the largest declines. Along with other sunbelt cities like Miami, Las Vegas, Phoenix, and Tampa, parts of San Diego are starting to see some increase, but this is only a month-to-month anaylsis. One good sign is that our most recent monthly incline of 1.4% is the lowest since last August.
Have we hit the bottom? Nobody is certain. Many say we still need to wait; before we see any turnaround we have to wait for a settling down of the mortgage market, which is plagued by record defaults and forecloseures. The new housing bill that we are waiting on, might hurt investors wanting to join the market, since they are going to think that anytime the market goes south the government is going to bail people out. Letting the housing market unravel naturally is the only way to confirm its ability to work properly.
Some see signs of certain areas stablizing as a good thing, but many also predict that we could see as much as an 8% decrease in the market through 2009. I think that this is the year you should jump in if you want to purchase a home. If you need any information on homes in the San diego Area don’t forget to visit my website at www.encinitasproperties.net
Thanks for Reading…..