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San Diego County Real Estate Market Update
Joanne’s Real Estate Market Update

Last Updated June 7, 2009

 

Finally! San Diego Home Prices Move Up

 

Home prices in San Diego County rose some 5.2 percent in April compared to March with the median price now at $340,190, according to the California Association of Realtors’ recently released report. However, this remains 23.3 percent below the median price of April 2008. Home sales in the county increased 62.6 percent in April compared to the previous year although they dropped 2.1 percent from the prior month.

 

Of the 34 zip codes I monitor for the North County Resale Report (see below), the sold prices this year through April increased in 20 compared to the prior month, based on Multiple Listing Service statistics. This was the same number that increased in March compared to February, although not necessarily the same zip codes. But these figures indicate that locally prices indeed appear to be stabilizing. Statewide, the median has increased for two consecutive months and the nine-month string of year-to-ear price declines in the 40-percent range has ended, according to Leslie Appleton-Young, C.A.R. chief economist.

 

The One Big Problem: The Two-Tier Market

 

We are in a two-tier market. Buyers are rushing in to pick up distressed properties at the low end. For qualified, first-time buyers it’s a bonanza. There’s a $8,000 federal credit for first-time buyers that’s good only this year and, with conforming loans, banks can loan you up to 96.5 percent of the purchase price because they can quickly sell that loan to Fannie Mae or Freddie Mac and pocket the fee.

 

The rise of the conforming loan limit in San Diego County coupled with relatively low interest rates is providing a unique opportunity for home buyers, according to Steve Gray of Wells Fargo Mortgage in Carmel Valley. The conforming loan limit was raised to $697,500 from $546,250 recently and the higher limit is good until the end of the year. This means that a buyer who can qualify for an FHA loan can put down as little as 3 ˝ percent on a home purchase. Of course, gone are the days when a buyer could just “state” his income. “Now you have to be able to document your income,” Gray says. 

 

Meanwhile, the jumbo loan market “continues to be starved for financing, constraining sales for the high-end segment,” says the C.A.R.’s Appleton-Young. Jumbo, or non-conforming, loans can present a problem in that there is no after market for them now so the banks have to hold onto those loans. This means the banks must have the money to lend and the buyer must show he or she is capable of paying the mortgage. Gray says in the jumbo category typically a 25 percent down payment and a good credit score are required. “There is money to lend. For those qualified, we are writing loans to $3 million, but you have to show good cash reserves and a verifiable income,” he notes. “We’ve really come full circle. This is the way it was when I got into the business 21 years ago.”

 

Low, Low Rates: Going, Going….Gone

 

Just a few weeks ago a qualified buyer could get a 4.75 percent interest rate on a 30-year fixed conforming loan.  This past week the cost of money jumped up and as of June 5 the rate for a 30-year fixed was quoted at 5.45 percent and even higher, according to the Mortgage Bankers Association.  This has resulted in re-financings coming to a screeching halt, says the association, and it also has given buyers a new sense of urgency to get off the fence before interest rates go up again.

 

The North San Diego County Resale Report

Single Family Detached Homes Sold In 2009

 

Area

 

Zip Code

 

2008 Average*

 

2009 Average*

         (thru April)

 

 

 

 

Bonsall

Borrego Springs

92003

                     92004

$623,371

267,341

$475,240

170,088

Carlsbad

92008

690,938

563,571

Carlsbad

92009

817,662

                   752,418

Carlsbad

Carlsbad

92010

92011

552,689

854,493

458,219

743,767

Carmel Valley

92130

                  1,140,011

1,095,023

Del Mar

92014

1,977,584

1,630,128

Encinitas

92007

982,495

1,015,235

Encinitas

92024

976,509

844,978

Escondido

92025

372,827

295,269

Escondido

92026

371,208

314,387

Escondido

92027

319,164

258,361

Escondido

92029

548,978

403,478

Fallbrook

92028

473,501

358,477

La Jolla

92037

2,373,889

1,912,564

Oceanside

92054

436,346

346,538

Oceanside

92056

375,791

325,765

Oceanside

92057

346,472

299,138

Pauma Valley

Poway

Ramona

92061

                      92064

92065

432,787

694,205

420,661

371,666

607,420

355,862

Rancho Bernardo

92127

944,762

896,536

Rancho Bernardo

92128

559,785

489,283

 

 

 

 

Rancho Santa Fe

92067

3,514,283

3,445,987

Rancho Santa Fe

 

92091

2,811,538

1,451,250

San Marcos

92069

380,117

332,904

San Marcos

92078

510,959

468,872

Solana Beach

92075

1,549,704

1,234,468

Valley Center

Vista

92082

92081

516,599

413,466

420,633

371,851

Vista

                     92083

285,721

235,872

Vista

Warner Springs

92084

92086

397,102

311,923

318,784

320,000

 

 

 

 

*Source: Multiple Listing Service

 

© Joanne Fishman 2009

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Joanne sells San Diego, including Carlsbad, Carmel Valley, Del Mar, Encinitas, Rancho Santa Fe, San Marcos, Santaluz, and Solana Beach.


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  Joanne Fishman, REALTOR®
Prudential California Realty
6119 La Granada
Rancho Santa Fe, CA 92067
jf@joannefishman.com
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