Tag Archives: home prices

Home Prices Up Per Square Foot

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…

Median Home Prices Show First Increase Since 2006

MEDIAN HOME PRICES SHOW FIRST INCREASE SINCE 2006

 San Diego County showed their first year increase since June of 2006, according to DataQuick yesterday.  It wasn’t a big increase however it was significant enough to show we might be at a turning point in the real estate market.

  “It’s a reflection of a market that has stabilized in many areas”. DataQuick analyst

 The overall median home price went from $350,000 to $360,000 a change of +2.9%.  We have seen a drop in prices over the past 13 months so this is very strong indicator of things to change.  Many analysts feel the government involvement has helped buyer/investors join the market, with all time lower interest rates, FHA insured loans, and the treasury department taking over Freddie mac and Fannie mae.  They have also just extended the homebuyer credit for another six months which could help the market keep its pace. 

 The one concern many analyst have is who is driving the market.  The majority of sales (36%) have involved homes foreclosed on in the previous 12 months, dataquick said.  This has become a sellers market for certain types of product in certain locations.  What would help the market even more is sales activity in higher-priced neighborhoods.  Transactions have remained low since sellers have not reduced enough and financing can be difficult in these price ranges.  If we do not see a new wave of foreclosures flood the market due to loans going bad and some movement in the higher end home prices we should be able to maintain a stabilized market.

 The overall housing picture appears to be turning around.  We have turned some major corner with increase of sales and home prices increasing slightly.  If the interest rates stay low and the supply stays steady we should see this market continue to climb

When will we hit the bottom???

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…..