Home Buyers San Diego

 

san diego real estate bubble

October 2010

Rebound of real estate market? The numbers as shown below show almost 6% higher median home prices. Does that mean home prices went up? Factors which influence these numbers:

Amount of foreclosures at lower end of the market (relatively more $400K homes sold?)
Interest rates are dropped even further to historical low rates like 3% for a 5 year ARM (however loans are more difficult to get?)

San Diego Home Prices September 2009- 2010
  +5.9% (1 year) 1 year ago 5 year ago
All properties $322,000 $304,144 $495,000

Brief conclusion:
The real estate market is not really recovering, there is still lots of inventory and lots of "gray inventory" , income has not gone up, 10+ of people are unemployed. Loans at 3% are only for people with 20% equity in their home (refinance) or need 20% cash to buy a new home, having excellent credit. To top it off, home appraisers are very modest, which result in a $500K to be valued at $460 for example, the home buyers has to show an extra 40K cash to buy that home. Relatively only a very few new house project are build, which is positive as it keeps the supply tight.

Factors which can help to help the real estate market prices to increase:
More jobs, higher wages, tight market with lower supply, keeping low interest rates.


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.

Kensington, San Diego CA 92116 real estate for sale. Spanish homes build in late 1920's with lots of character, only 10 minutes from downtown, and 6 minutes from Mission Valley.

"important people" - worthless predictions

As you might see below, David Lereah real estate predictions are worthless (2007). Why does Reecon Advisors, Inc. hire him as the president and launched in 2009 a Real Estate Economy Watch web site (realestateconomywatch.com). We going to believe now everything they tell us. David Lereah did not know where he was talking about in 2007, why should we believe him now?

Currently - November 2010 - David Lereah is the President of Reecon Advisors, Inc., a real estate advisory and information company located in the Washington, DC area. Reecon Advisors is the owner and publisher of Real Estate Economy Watch, one of the industry's leading Web sites providing intelligence and information on the residential real estate market.

Below, David Lereah, chief economist for the National Association of Realtors predicted for price appreciation for 2007. "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 continuous wrong predictions of David Lereah, chief economist for the National Association of Realtors.

NEW YORK (Fortune) -- Equity-addicted homeowners have long hung on David Lereah's every word. As chief economist for the National Association of Realtors, he's responsible for tracking the closely watched sales of existing U.S. homes.

He's also seen as a booster for the housing boom. But after five years of record volume and price growth, sales dropped by 8.4 percent last year while prices rose by a measly 1.1 percent nationwide.

San Diego real estate - homes for sale.

Kensington House Prices

 

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