Home Buyers San Diego

 

News

February 2012

Home Loans - Mortgage Rates
5 5ear loans at ING direct are still close to all time low rates, based on 20% down and excellent credit:

Easy Orange 5 Year 2.625% - APR 2.925%

January 2012

San Diego County Home Prices Drop by 0.9 Percent
between October and November 2011, according to the Standard & Poor's Case-Shiller Home Price

 

December 2011

Here we go again.....

Freddie Mac: Interest rates on 30-year home loans hit new lows

30-year, fixed-rate mortgage = 3.94%
The average 30-year, fixed-rate mortgage declined from 3.94 percent, according to Freddie Mac. A year ago it was nearly a point higher at 4.81 percent.

15-year, fixed-rate mortgage = 3.21%
Average interest rates on 15-year, fixed rate home loans remained at a record low of 3.21 percent.

----------------------------

Total up-front costs for 30-year, fixed-rate loans averaged .7 percent of the price of the home being bought; for 15-year loans it was at .8 percent, according to Freddie Mac.

 

 

Interest Rates "again" at all time low

September 2011: What???? Even Lower, just 2.550% at a reliable bank with 20% down, and no points!! See all Rates for Home Loan Mortgage for September 2011.

San Diego Real Estate

April 2011

David Blitzer of Standard & Poor's says home values set low marks in many markets around the country in February, but San Diego home values are still more than 7 percent above the bottom of the market set in 2009.


Half San Diego Households Can Afford a Home
December 21, San Diego Reader

"As the housing bubble inflated amazingly earlier in the decade (2006-2007), only 7% of San Diego households could afford to buy a median priced home, Now that the bubble has burst, 51% of households can buy a median-priced home. " says Kelly Cunningham
Read more about home price affordability

March 2011

Dataquick:

Median Price
All homes
last 3 months 1 year ago 5 years ago
San Diego $305,000 $308,000 $501,000

View more details about the home prices in San Diego, including Coronado, La Jolla and Downtown San Diego.

Las Vegas Metro Area Home Sales

Las Vegas region September home sales fell 15 percent from a year ago. down almost 55% form 2006!!!

Mortgage rates are at an all-time low which should make it attractive to buy. However when there are no jobs, and huge amounts of people foreclosed or are significant amounts "under water", there is no change that these -previous potential buyers- will buy anything in the next few years.

Jumbo loans, mortgages above the old conforming limit of $417,000, accounted for 18.1 percent of last month's purchase lending, the same as the month before and up from 15.2 percent in September 2009. Before the August 2007 credit crisis, jumbos accounted for 40 percent of the market.

August 2009

Economist sees rebound for San Diego real estate market

Nationwide:
July home sales surge more than 7 percent.

Sales of foreclosures and other distressed properties made up about a third of all transactions in July 2009, down from nearly half earlier this year.

March 2009

Southern California home prices down 39%!
San Diego has a 31% decline: median to $285,000.

Source: LA Times, March 17, 2009:
Southern California median home price falls to $250,000
February prices were down 39% from the same month a year prior. Low prices boost homes sales 41%.

Foreclosed homes comprised 56% of properties sold!

Previously foreclosed homes comprised 56% of properties sold, according to San Diego-based MDA DataQuick.

November 2008

Conforming Loans
CONFORMING LOAN LIMIT FOR U.S.
TO REMAIN $417,000 IN 2009;
NOT $729,500 ANYMORE (depends per county)


July, 2008

San Diego and many other metro areas around the country continued to see record home price declines in May.

Home prices fall 23.2%

Home prices dropped a record 15.8% (USA) from May 2007 to May 2008, with San Diego down a record 23.2%.

Let's rephrase these numbers with some common sense:

1. home prices have gone down the last 12 months
2. the decrease in home price does not mean every home is worth 23.2% less than last year, it means homes sold for a 23.2% lower price (median) than last year.
3. roughly 40% of all sales in San Diego County were foreclosures (or bank-owned etc.), mostly in the lower-class neighborhoods, this also decreases the median home price as more lower priced homes have been sold.
4. As significant more homes are sold in the lower-bracket than average which makes the number home price decrease look significantly more than when looking and just resale of homes bought in 2004-2007 and resold for roughly 5- 15% less than 1 year ago (not 23%)
5. Foreclosures/ bank-owned properties generally do not sell for a top price relatively to the assumed property value. Fast sale makes it tough to get a good amount of "descent offers" (often 5-10% under market price is a fair assumption)

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Real Estate Overview

San Diego and Las Vegas home prices over the last 10 years, shown below.
Las Vegas home prices soared from $120K in 2000 to $310K in 2006. Late 2011 the Las Vegas home prices are back 90K (80K-100K depending on Las Vegas/ Las Vegas County as measurement).

If there is one place people want to live, only when there are jobs (making lots of money in 2002-2007 with a high school degree serving tables), now with less jobs and more homes for sale then sellers interested (even at 3.2% interest rate s(when you have good credit). Even people who bought 11 years ago are under water: huge problem area.....

home prices sandiego

San Diego's home prices have fallen pretty similar but a bit less drastic (only 30% -50% below the top). Job market is not great but not a mess, people really like to live here, beach, weather etc. However also 30%+ homes were bought cash earlier 2011. Banks are slowly put gray market homes on the market: auctions, REO's etc. Especially condos seem to be available at 50% lower than 2006 prices.

Assuming banks will be receiving continuing support from the government to provide loans to slightly risky home buyers at cheap rates, assuming the gray market stock will flow slowly onto the market: it seems the market begins to slowly balance: investors picking up fixer-uppers, vacation homes for grandpa, young professionals with good jobs really can buy something nice for a reasonable month rate...

Who is buying homes? March 2011

Mortgage Rates Trends:

Conforming Loan: San Diego County

2011 Single-Family Mortgage Loan Limits
Conforming loan limit for San Diego is $697,500.

Recent updates: Fannie Mae Web Site

The end of March 2009 the conforming limit will be raised back to $697,500!!

December 2008

The November median price was down 34.5 percent from the same month a year ago, and 43.6 percent below the peak price of $505,000 recorded during several months in 2007, the San Diego real estate information service MDA DataQuick reported Tuesday.

The median price of a home in San Diego County last month was $305,000, down from $440,000 in the same month a year ago.

  Apr-Jun '08 Jan-Mar '08 Apr-Jun '07 Apr-Jun '03  
Normal Heights $287,375 $345,651 $398,216 $266,299 -37%
All of San Diego $405,837 $423,632 $550,990 $438,025 -38%
Kensington $683,598 $756,417 $579,317 $416,714 -10%

The overall median last year of nearly $500,000 represented a more than doubling of San Diego County's home prices since 2000, when the average property sold for $234,000.

The median resale price for existing single-family homes dropped $15,000 from November to December to stand at $550,000, the largest month-to-month decline since DataQuick began keeping records in 1988.

San Diego County Resale House Prices

01/06/2006 SAN DIEGO –
San Diego County resale house prices tumbled last month by the biggest number in 18 years of record-keeping and contributed to the smallest year-to-year rise in overall prices in six years,

DataQuick Information Systems reported Monday. The median resale price for existing single-family homes dropped $15,000 from November to December to stand at $550,000, the largest month-to-month decline since DataQuick began keeping records in 1988.

Negative Migration

The monthly mortgage cost for a median priced home has been an issue for a large group of San Diegans. This has lead that San Diego has been experiencing negative net migration since 2004.

Home Prices Statistics from a few years ago:

2007 - Home Prices Decline

09/06/2007 source: Mercury News
Standard & Poor's Case-Shiller national home price index reported that prices in the second quarter fell 3.2 percent compared with the second quarter of 2006.

Declines in property values in some metropolitan areas were much more severe - down 11 percent in Detroit, 7.7 percent in Tampa, 7.3 percent in San Diego, 7 percent in Washington, D.C., 4 percent in San Francisco and 3.7 percent in Boston.

House Prices: Who Says What?

Does any realtor what they talk about? Incompetence by nearly everybody in the real estate industry, for example:
San Diego Source- www.sddt.com
Top 10 reasons to buy a home now
By RICK HOFFMAN, Coldwell Banker Residential Brokerage
Thursday, February 22, 2007

Some (really independent/educated people) have some pretty good advice and evaluations:
Federal Reserve Board of Advisors

Real Estate and Home Loan Mortgage Links:

Kensington-San Diego
Kensington Real Estate, San Diego County

Rancho San Diego - East County - San Diego East County Real Estate

Home prices in San County: La Jolla, Del Mar, Carlsbad, Rancho Santa Fe, Mira Mesa, downtown San Diego, Mission Hills, Hillcrest, Rancho San Diego, La Mesa.

Conforming Loans

 

News about real estate/ home for sale in San Diego County

28% of San Diego home sales in January 2011 were cash

Almost three out of 10 home buyers in San Diego County in January closed with cash, the highest it's been in 21 years, according to La Jolla-based DataQuick Information Systems.

As San Diego home prices are still relatively low, and potential home buyers can get a 4.5% loan (5 year ARM) and still do not buy (significantly less than 5 years ago). DUE TO not too many real potential home buyers - cash investors buy at very reasonable prices.

Potential Home Buyers

It seems like an excellent time for a family to buy for the first time or buy the next home.

First time buyers: as there are lots of incentives (subsidized by the government) to motivate people to buy is still not cover lots of first time home buyers. Bank really look at credit card debt and want 5%, preferably 20% down to provide a home loan. In San Diego that means quick $100.000 based on 20% to put down to get the loan with the low rate.

Potential buyers looking for their next home and a home mortgage loan: as lots of homes were sold in 2004-2007 often with a 5 year ARM loan, there will be slim change these people can move. As home prices went down form the prices in 2004-2007 and, on top of that, most loans were 0% down loans, most home "owners" have no or negative equity. Did they save lots of money, most likely not as they paid very high monthly fees (often 2 times higher than the rent cost for the same home/condo would have been.

Home owners which own for 7+ years and did not make too many bad decisions are able to buy. How many are there? Not many as the home sales are at the lowest point since 10+ years (investors buy 30% of all homes cash currently, the highest ever). for home owners with a 6% or 7% loan it might be attractive to buy and get a 5% or less loan which would allow for a up to 40% bigger house. For "the smart" home owners whom refinanced over the last few years at extreme low rates, there might be no urge to buy.

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San Diego Home Prices
View more details about the home prices in San Diego, including Coronado, La Jolla and Downtown San Diego.

Home Loans for San Diego County
View more details about the home loan rates in San Diego, including conforming/ jumbo/ FHA rates, 5 ARM, 15yr fixed and 30yr fixed.

Who is buying - Homes in San Diego, Phoenix, Las Vegas?

Investors, Foreigners? Read more about Who is buying?

 

Deals/ Rebates

First-time buyers

First-time buyers must complete their sales transactions by the end of November to take advantage of a tax credit of 10 percent of the purchase price, up to $8,000. The real estate industry is lobbying Congress to get the credit extended.

Source: California Association of Realtors

California June 2008 Home Sales

July, 2008

June home sales was the slowest in DataQuick's statistics, which go back to 1988.

Source: DataQuick Information Systems

Of the homes sold in June, 41.9 percent were foreclosure resales, up from a revised 40.1 percent in May and 6.6 percent in June a year ago.

December, 2007

The median price paid for a home last month was $328,000, down 3.2 percent from $339,000 for the month before, and down 31.5 percent from $479,000 for June a year ago. Around half the drop in median is due to depreciation, the other half due to shifts in the types of homes selling, and how those homes are financed.

 

The median home price hit $402,000 last month, down 14.8 percent from $472,000 in the year-ago period, according to DataQuick Information Systems. The state's median home price peaked last spring at $484,000.

In May 2007, a median house in San Diego cost $612,000.

Source: California Association of Realtors

Housing Affordability

Growth of real estate prices in San Diego County has not been accompanied by comparable growth of household incomes: housing affordability index (percentage of households that can afford to buy a median-priced house) has been below below 20% since 2003.

more views on house prices and economy >>

August 2009
San Diego home Prices

Trends in home prices in San Diego County and Southern California.

 

 


source: Trulia - average home prices in San Diego County - vs - Kensington Neighborhood