San Diego home prices to slide for 2 more years (August: appointed, credit)

[tsuyoi_racing]

this is what my agent told me... the trend here in San Diego (north county) is inventories are low so people are in a bidding war.

Hello,

Last as far as the $8,000 stimulus package credit that has helped bring more buyers but is isn't the main reason, right now value are in that area are not still going down they are either leveling out or in a lot of cases going back up. There are more buyers then homes and it isn't because of a tax credit it is because they can get a house that 3 years ago was $200,000 to 300,000 more of a price and rates are still lower then they have for years. More people can afford the prices and rate (or
payment) so they are now able to take the next step so please don't believe that once the year is over that less people are going to buy since the tax credit is no longer available that is a very small amount of buyers that are going after that. To give an example I have a buyer that just got their offer accepted that the original listing price was $235,000 he had to offer $300,000 and wasn't the highest bidder. He was a back up offer and the highest bidder fell out due to not being able to get the financing. Sorry for such the long email but hopefully that will
give you a little more insight of how the market is right now.

Thanks,

John

[tsuyoi_racing]

My agent is pretty informative and patient. He took the time to explain to me what is currently happening with the market and not once have made any attempts to rush me into buying. But what I'm finding is that most houses I'm interested in are being out-bidded out of my price range. I find that I have to get another pre-approval letter (requesting higher amounts) in order to stay in the bidding war.

Here's the actual email from yesterday for a house in San Marcos:

I've actually seen a house with the exact floorplan and it's nice. Great location. I'm almost positive it will sell for more then $329,900. The last one with the same plan sold for $350k. Let me know if you want to check it out.

From this, it looks like the housing downturn (even with Alt-A) affects other parts of the country like Miami and definitely NOT San Marcos / Oceanside. So due to upbidding, a house that lists for $329K is actually $350K.

[Charles]

It's only one data point but this certainly caught my eye:

Sold Price: $581K: (5BR, 4BA, YB 2003, 3773 sqft, $153/sqft, 3 garage), June 29. 2009

8448 Donaker St, San Diego, CA 92129

Not a bad neighborhood for schools it seems:

Los Penasquitos Elementary School, Great Schools 9/10
Mesa Verde Middle School, 10/10
Westview High School 8/10

[earlyretirement]

Interesting reading this old post.......

[Daveydoe]

Yes it is...change title to 5 years please

[runtrails]

So how has it been? Did housing prices decrease versus 2008-09 levels? Are the areas once considered desirable still desirable?

[TristramShandy]

Originally Posted by Daveydoe

Yes it is...change title to 5 years please

And yet San Diego is one of two markets (D.C. being the other) that has seen appreciation over the last year out of the top 20 markets. SD, LA, and SF are some of the few markets that seem to have stablizied.

[esmith143]

So how has it been? Did housing prices decrease versus 2008-09 levels? Are the areas once considered desirable still desirable?

[earlyretirement]

Can anyone say "double dip"? Really with the lack of jobs in the market place and the more stringent lending, especially at the Jumbo loans level ... I can't help but think we will hit new lows again. I do believe that San Diego is a much much stronger market than some of those other less desirable cities so property values should do much better. Still, without the jobs and the tougher credit standards, I don't see a ton of new buying in the immediate future.

We need to see the job market drastically improve before we see any meaningful long-term turn around in housing. It will also be good to see all of the shadow inventory cleared out so people know what the true value of homes really are. Get the millions of homes that need to be foreclosed on.....cleared out so a meaningful recovery can begin.

[runtrails]

Wow! I'm from the midwest and seeing Mid-Priced housing being in the range of 316K -481K is incredible!

Anyone know of a local company that deals with San Diego foreclosures or short sales?

thanks!