“I’ve heard that real estate prices in San Diego have dropped 50% from their peak couple years ago and I’m ready to buy a home in San Diego at a 50 percent price discount… Can you help me find one?” This is the question I’m often asked today from buyers who want to either relocate or buy an investment property in San Diego. When I ask them where did they hear that home prices in San Diego have fallen so low, they claim to have heard it on the news or read it on the paper.
Well here are some facts about the actual real estate price drop in the San Diego County:
The median sales price for all homes (detached and attached resale and new) in San Diego County last month was 9.7 percent lower than it was in November 2006, as DataQuick Information Systems has reported. The median for resale detached homes slid 7.4 percent in the same period, while resale condos dropped 9.6 percent and new homes 2.3 percent.
The median price has now fallen 14.98 percent from its peak of $517,500 in November 2005.
One explanation for the lower median price right now is the limited access to jumbo financing (mortgages for more than $417,000). With fewer people able to finance homes priced higher than $417,000 in San Diego, fewer of those homes are selling. Thus the median, midpoint among prices of all homes sold in a particular month, drops.
San Diego County bank repossessions (foreclosures) for November were 230 (down 78 percent from October), while notices of default were 1,858 (down 28 percent from October). The San Diego metro area dropped from 16th to 19th in California for the highest foreclosure rate per 1,000 households.
Foreclosures at the oceanfront, beach and also the North San Diego communities with high rated school districts are either minimal or non existant where real estate values are either holding or continue to rise!
There are a few areas in San Diego County where the values on some properties have indeed dropped at a large percentage and bargains can be found… however those properties are not in the high desirable areas that most are calling for!