This article just in from the San Diego Union Tribune:
“San Diego County’s median home price tumbled below the $400,000 mark last month for the first time in nearly five years as the region grappled with rising foreclosures and defaults, DataQuick Information Systems reported yesterday. The overall median stood at $395,000, down $20,000 from February and off 19.4 percent from a year earlier. It was the first time since November 2003 that prices were below $400,000.”
Yes, this is a CrAzy market. Let me know if historically you’ve ever seen anything like this. Conventional wisdom would suggest that this many foreclosure on the market should mean that interest rates would be historically high – around 12-15%. Completely the opposite is true. Loads of foreclosures and historically LOW interest rates. If that doesn’t signal TIME TO BUY in the next 18 months then what does? What do you think will happen in our San Diego real estate market in 5 years from today?
Anyhow, at the moment we seem to have 2 real estate markets going concurrently, is picking up speed and continuing to drive retail listing prices down in the areas hardest hit by the sub-prime debacle. Those areas h the usual retail market and the foreclosure market. The foreclosure market ardest hit by foreclosures in San Diego are the South Bay, North County Inland and East County. The coastal areas of San Diego are holding up quite well amidst the turmoil.
Buyers – It’s shaping up to be a good year for buy and hold investors and home buyers. If the stringent lending standards ease up slightly and interest rates continue with their historically low rates Spring/Summer/Fall will be good for real estate.
Sellers – if you don’t have to sell, Buckle-up and Stay Put. Ride out the next 18 months and possibly look for an investment opportunity, re-fi, or rennovate.
