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April 21, 2011

A 20 Year Look at the Median Home Price for San Diego Real Estate
In December 1986 the median price paid for a home in San Diego County was about $125,000, in mid 2006 the median price paid for a home in San Diego County was near $680,000, and today the most common asking price is near $370,000. This is far from a complete story about prices in San Diego County. Prices along the Coast, i.e., La Jolla and Del Mar where the average asking price may be near $2,000,000 while other areas in the county may have an average asking prices below $200,000, these are not homogenous numbers only average statistics which hopefully can show a trend . The home prices in any market will be determined by many varying factors depending on local conditions, but the rule of location, location, location seems to almost always be true. Any unique home needs to be evaluated as to its value based on many factors, but for a quick look at the trends these numbers are helpful.

The steep decline in home prices from mid-2006 through the end of 2008 is unprecedented in San Diego County home price history. The drop was almost 50% during the short 30 month period from June 2006 to December 2009for the median home price. From February 2009 until the summer of 2010 the market has shown a period of 16 months of slow but steady price recovery, with the market showing both decline and pushes upward, with a high median price of near $400,000 during the peak selling period of spring and early summer of 2010. During the first quarter of 2011 the market has had a great deal of activity. While sales prices have been up one week and slightly down another since January it will be interesting to see the 1st quarter numbers and where prices go during the next few months.

Bottom-line; in the last 20 years the median home price in San Diego County is up from near $200,000 in January 1991 to near $380,000 in December 2010, an 85% increase or an average of about 4.25% per year in Value. During the same period interest rates have come down from over 9% for a 30 year fixed rate loan in 1991 to about 5% today. When these numbers are adjusted for inflation a home today is more affordable than it was 20 years ago. These numbers are very general. For your specific area of interest contact Ruth Mills at 888-450-6691 or RuthMills@MillsTeam.com for a complete analysis.

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