7% of San Diego households could afford to buy a median priced home in late 2006
As the housing bubble inflated amazingly earlier in the decade, only 7% of San Diego households could afford to buy a median priced home, says Kelly Cunningham, economist for the National University System Institute for Policy Research (http://www.nusinstitute.org/).
Now that the bubble has burst, 51% of households can buy a median-priced home (late 2010).
However, San Diego is still the 12th least affordable housing market. San Diego home prices are back to where they were in 2003, and adjusted for inflation, are back to 1999 levels, says Cunningham. If the current trend continues, "home prices are likely to stay below former peaks for another 8 to 10 years," says Cunningham. "Adjusted for inflation, prices may never reach previous highs without an unprecedented and unexpected rise of area household incomes."
Cunningham's new San Diego Economic Ledger has just been published by the institute.
Trulia shows trends in median home prices in San Diego: Areas like Kensington beat the trends:
| march 09 | march 09 | 1 year ago | 5 years ago | |
| San Diego | $330,000 | $270,000 | $365,000 | $403,500 |
| Kensington | $561,000 | $645,000 | $665,000 | $655,500 |
| Normal Heights | $200,000 | $159,530 | $300,000 | $306,000 |
Elements which effect the Home Price :
November 2010
| Loan/ Value home | Rate | APR | ||
| ING 5/1 Orange Mortgage Years 1-5 Fixed Rate - 0 points |
80% or less | < 500K | 3.125% | 3.269% |
| Wellsfargo 5-Year ARM - 1 point | 80% or less | < 417K | 2.875% | 3.126% |
| Wellsfargo 30-Year Fixed - Jumbo | 80% or less | > 625.500 | 4.875% | 5.012% |
August 2009
| Loan/ Value home | Rate | APR | ||
| ING 5/1 Orange Mortgage - no points | 75% or less | < $500K | 4.500% | 4.098% |
| > 500K | 5.000% | 4.284% | ||
| Wellsfargo 5-Year ARM - 1 point | 75% or less | < 697.500 | 4.50% | 4.071% |
| > 697.500 | 5.250% | 4.353% |