Real Estate on Rebound?
There might be some small cause for celebration for owners of single family homes in North County with the news that median home values increased 1 percent from January, 2009 to February, 2009–from $361,250 to $364,900. And the reason that small increase might warrant at least a small sigh of relief is that year over year (02/2008 to 02/2009), home prices in this area have declined by a whopping 29.15 percent from $515,000 in Febuary, 2008.
So, any increase, no matter how small, could represent the beginning of a thaw in the San Diego real estate market.
The condo market, though, is still suffering in North San Diego Count,y where attached home prices have continued to fall. In the one month period between January and February, median prices decreased an additional 8.59 percent–from $198,000 a month earlier to $181,000 in February. A year ago, condo prices here stood at a median of $310,000.–which represents a drop of 41.6 percent.
That one month period also shows a drop in the median days on market (DOM) from 54 days in January to 52 days in February. Sales activity has also pick up speed in the last year, with a year-over-year increase of 22.57 percent (443 in 2/2008 v 543 in 2/2009).
With the implementation of the first time homebuyer’s tax credit of $8000, I expect to see a jump in North County condo prices in the year ahead–as well as with homes that fall within FHA and VA lending guidelines. Interest rates are still low, and there are plenty of incentives for buyers of San Diego real estate.
Finally, to lump all of North San Diego County into one statistic can be very misleading, because median prices for single family home in Rancho Santa Fe hover at $2.7 million, while Escondido, Vista and parts of Oceanside are now ranging under $300,000.
And it’s the lower end of the market that is congested with investors and first time homebuyers trying to get the bargain homes while they are still available–and where multiple offers are commonplace.
Click to search the San Diego MLS or feel free to give me a call at either 877-818-8197 or 760-402-9101 to discuss local market conditions. I’ll also be happy to email a detailed report for just about any San Diego area zip code.