Home Buyers San Diego

 

What is happening in Real Estate?

What did your (incompetent) real estate adviser say over the last few years?

See real estate update for 2011

Who was wrong?

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

I will show only the first reason which he mentioned:

For the thousands of San Diegans weighing the pros and cons of owning vs. renting, or upsizing or downsizing from their present home, here are 10 factors to consider:"

1. No bubble trouble: There is no reason to sit on the sidelines waiting for a dramatic drop in price. While double-digit appreciation may no longer be the norm in San Diego and the Inland Empire, the market is not crashing and average sales prices have remained flat. Buyers sitting on the fence will miss out on the long-term appreciation gains and the tax advantages of homeownership.

The realilty is:
Median Homes Prices dropped(crashed) from February 2007 until July 2008 from $499,000 to $353,000 a decline of almost 30%!!!!
source: housingtracker.net

Mr. Hoffman is still smiling on his picture as the President and COO of NRT/ Coldwell Banker Residential Brokerage in San Diego, California

 

Who was also wrong?

Below, David Lereah, chief economist for the National Association of Realtors predicted for price appreciation for 2007. Quoted: "My forecast is 1.4%"

Result in 2007:
U.S. 2007 home prices experience the largest decline in more than 20 years : - 8.9%
Feb 26th 2008 - Standard & Poor's Case-Shiller Index
Home prices in the United States fell 8.9% in 2007, the biggest decline in more than 20 years.

Feb 26th 2008

To read more about these worthless predictions:

Blogspot: about the continous wrong predictions of David Lereah, chief economist for the National Association of Realtors.

 

Here is the opinion, based on arguments, of people who at least know where they talking about.

Federal Reserve Board of Advisors

Governor Frederic S. Mishkin
Forecaster’s Club of New York, New York, New York
January 17, 2007

Enterprise Risk Management and Mortgage Lending

Over the past ten years, we have seen extraordinary run-ups in house prices. From 1996 to the present, nominal house prices in the United States have doubled, rising at a 7-1/4 percent annual rate. Over the past five years, the rise even accelerated to an annual average increase of 8-3/4 percent. This phenomenon has not been restricted to the United States but has occurred around the world. For example, Australia, Denmark, France, Ireland, New Zealand, Spain, Sweden, and the United Kingdom have had even higher rates of house price appreciation in recent years.

Although increases in house price have recently moderated in some countries, they still are very high relative to rents. Furthermore, with the exception of Germany and Japan, the ratios of house prices to disposable income in many countries are greater than what would have been predicted on the basis of their trends. Because prices of homes, like other asset prices, are inherently forward looking, it is extremely hard to say whether they are above their fundamental value. Nevertheless, when asset prices increase explosively, concern always arises that a bubble may be developing and that its bursting might lead to a sharp fall in prices that could severely damage the economy.

This concern has led to an active debate among monetary policy makers around the world on the appropriate reaction to the run-ups in house prices that we have recently seen in many markets: Should central banks raise interest rates? And how should they prepare themselves to react if housing prices decline? These are the issues that I will address today. The views I will express are my own and not necessarily those of my colleagues on the Federal Open Market Committee.

Home prices, like other asset prices, have important effects on output and inflation. Home prices affect the economy in two primary ways. First, when they begin rising, the expectation of further appreciation tends to become built into the market. That expectation boosts demand for homes, which stimulates new construction and aggregate demand.

Of course, the sustained rise in prices can simultaneously sow the seeds of a market correction by making houses progressively less affordable relative to income, thereby limiting the demand for them and restraining additional construction. Second, higher home prices increase household wealth, thus stimulating consumer spending, another component of aggregate demand. read more >>

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.

Home Buyers San Diego | san diego real estate market | san diego real estate bubble | What is happening in Real Estate?


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