Housing Market Summary for North County San Diego 2006

There has been much talk in the media in 2006 about the dramatic changes in the housing market here in San Diego. Headlines have shouted out the huge drop in sales and the declines in prices from the front pages and the business section on a regular basis. There seems to be a particular delight on the part of the media in sharing as much negative information as possible, with the result that many buyers decided to sit on the sidelines and not purchase a home, despite the fact that the inventory was terrific as were the interest rates.

The North San Diego County Association of REALTORS (N.S.D.C.A.R.) publishes a monthly report called HomeDex^TM, which outlines the status of the housing market in North County San Diego, the changes taking place since the prior month, and projections about the future. These reports are quite lengthy (if you wish to have a copy of the full report, please contact me), so rather than cite all the numbers, here are the highlights for the 2006 year end report.

I have also summarized the MLS statistics for Carlsbad, San Marcos, Oceanside, Encinitas, Cardiff, Rancho Santa Fe and La Jolla elsewhere in my blog.

1. The MEDIAN price of a home (detached and attached) rose to $549,950 in December, from a median of $540,000 in November (an increase of about 2%) - detached homes went from $620,000 to $625,000, attached from $350,000 to $380,000. The median for December 2005 in North County was $610,000 for detached homes, thus North County prices rose 2.5% over 1 year ago.
2. The price changes in North County, as compared to declines in non-North County housing indicate that the North County market is a stronger housing market than elsewhere in the county.
3. The study indicates the housing market is gaining in strength and that prices are remaining stable.
4. The current market conditions are highly favorable for buyers, with a large inventory and interest rates remaining consistent with 40-year lows.
5. Information suggests the housing market is gaining strength, with a projection of modestly-rising housing prices in 2007. Thus, the favorable current conditions may shift.
6. 2006 was the 3^rd best year according to the National Association of REALTORS (N.A.R.)
7. The total number of single-family detached homes sold in 2006 dropped 8.46% from 2005. Attached home sales dropped 6.69%
8. The HomeDex^TM Affordability percentage for detached and attached homes together for December 2006 at 12%. This number indicates the percent of households that can "afford" the median priced home, ASSUMING 20% down-payment, and spending no more than 1/3 of the salary on housing (obviously the percentage of households who could afford the median priced home would be very different if it included homes where more was spent on housing [not uncommon] and where down payments were less than 20% [again, also very common, especially with newer buyers])

Being educated about the market is helpful as a consumer so that informed decisions can be made about what and when to purchase. Statistics are not everything - you should buy when conditions are right for your personal and financial situation, not because someone tells you it's the right, or wrong' time to buy.

Don't hesitate to ask if there are any questions or you need additional information about the market in North County San Diego or specific communities in the area.