The talk I keep hearing at open houses, from clients, and in the media in general is how foreclosures will affect the overall market value of where their homes are located. This, of course, is primarily a matter of the micro-market in which you purchased your property. Looking at the map above it is clear that San Diego real estate markets West of the Five have experienced the least amount of downward pressure on equity as a result of the limited number of foreclosures in beach communities. From this recent article in the Union Tribune:
According to DataQuick statistics, the greatest concentration of foreclosures last quarter was in the eastern area of Chula Vista, home to a large number of planned communities that have attracted many first-time buyers. Closer to the border, San Ysidro also had a high proportion of mortgage failures.
However, the beach areas are also vulnerable to sharp declines in equity and price cuts. A foreclosed property listed in Point Loma was last sold for $998,000, was taken back by the bank for around $850,000 and is currently on the market today for $635,350. See the flyer-link below for details.
