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…
I don’t know who caught this article the other day, but it is finally something positive about the Real Estate market. According to the NAR data the bargain hunters bought up a lot of the foreclosed homes in affordable neighborhoods driving the existing sold homes higher than it was a year ago this time.
In Riverside, Los Angeles, San Diego, Ventura, San Bernardino and Orange counties, 20,329 homes were sold last month, up 16.7 % from 17,424 last month and up 13.8% from 17,787 in July of last year.
Last month was also significant in the fact that it was the highest month by transactional volume since March of 2007, and the first month since September 2005 to rise above the year ago level.
Homes in the nieghborhoods where they have seen a lot of foreclosed homes are what are currently driving the market. However this is what a real estate market needs, investors joining the market again.
With interest rates at 6.25% and home prices down over 30% since the price peak, and 43.6% of all sales where foreclosed homes, there is no wonder why so many people are out grabing bargain. This is what they have always called a buyers market.
Last month is evidence that the market could be seeing a bottom, and prices may be on the rise sooner than expected. I believe by the end of the year we won’t see as many bargains as we do the rest of the year