There were nearly 3,500 home and condo sales last month, which is up over 11% from the previous month and up over
10% from the year before. The median price of a home fell a bit from the previous month, but is down over $100,000 from
the previous year.
Experts are agreeing that the recent fall in home prices is not due to the market finding its bottom, but rather the
number of foreclosures being sold are increasing dramatically. Foreclosures account for more than 40% of sales and there
are more homes going into foreclosure than foreclosed homes being sold. There were around six hundred less foreclosed homes
sold in July than there were sold in the previous month.
At this time, it is really tough trying to predict the San Diego real estate market, but experts are saying that
we will know more when foreclosures slow down and the current inventory begins to decrease, which will halt
falling prices.
The southern California real estate market resembles the San Diego market as well. Home sales are up due to
foreclosures, however in Los Angeles, sales actually fell. In
Del Mar, the median home price fell as did other
luxury real estate areas in San Diego, including
Encinitas and
Cardiff by the Sea. However, the median price
for a
home in Solana Beach actually rose more than 6%.
As always, some people are forced to sell their homes due to new jobs, death in the family, etc., but some of the luxury
home buyers are now having trouble getting financed. In the mortgage boom, many homeowners applied for jumbo loans and were
approved, but now, with tighter restrictions, these same homeowners are having trouble getting a loan.
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