San Diego Home Prices Fall like Many Other U.S. Cities

San Diego Home Prices Fall like Many Other U.S. Cities

CNN Money reported that 20 Major U.S. Cities, noted as "key markets" had an average decrease in value by almost 11% from January 2007 to January 2008. San Diego had a 1 year drop of 16.7% which was higher than the national average. See the attached photo from CNN Money and go to this link for the article. I am of the philosophy that the sooner San Diego will find its bottom the sooner the recovery will start. Most areas, not all, of San Diego have seen downturn in house values over the past couple of years and as the cycle continues they should drop more in many areas of the county. I think the question is how close are we to the bottom?

I think the foreclosure markets will drive down prices in many areas of San Diego and many other major cities of the U.S. I have seen a trend in the banks taking less money and some cases extremely low offers on distressed bank owned properties. This will really drive the average sales price down of homes within specific zip codes and communities. The deals for someone interested in buying a home in San Diego are in the bank foreclosures and short sales. Many parts of San Diego have many of these bank owned and soon to be bank owned homes to choose from. With banks taking less than what they had hoped, this has driven prices down even further and buyers can buy a lot for their money compared to last year.

The question that many buyers have is, can I get a better price if I wait and buy later in the year or buy in 2009? This is a good question. I think it is up to the individual buyer to answer. I think it also depends on exactly where in San Diego they want to buy a home or condo. Some parts of San Diego don't have many foreclosures and short sales while other areas of San Diego have many. The areas of San Diego with more bank owned homes will drop lower in value than areas with no or few bank owned properties. I think it's very important to get to the bottom and the sooner the better. When this happens the leveling off or slight up tick in the market will remove much of the anxiety. Of course we won't know when the bottom is until after it happens.

If you're interested in San Diego Home Buying and San Diego Real Estate make sure you contact Mike and Dawn Lewis at Dawn Sells San Diego.

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