In San Diego, The Name of the Real Estate Game is House vs Condo - May the Best Property Win

San Diego is no different than any other city when it comes to falling real estate prices and value. It can make almost anyone leery about buying even while making others very anxious to sell. For those in the market to buy, though, the timing could be absolutely perfect, especially if you know what to look for.

When it comes to purchasing a single family home in San Diego or its surrounding communities, it's important to know what's happening in the area. According to Zillow.com, a web site that follows the national housing market, home values have fallen 17.9 percent in San Diego County over the course of the last year. Zillow, based in Seattle, also found that more than a third of homes sold over that same period had gone through foreclosure and were sold at below-market prices as compared with non-foreclosure properties.

In an article about home prices that appeared in the San Diego Union-Tribune on November 12, 2008, the value index was down 28.3 percent. Additionally 52.5 percent of San Diego homes sold for less than the original purchase price. More expensive homes dropped in value by 10 percent while mid-level homes dropped 18 percent and low-end homes were down 27 percent. In total, single-family homes in San Diego currently have a median price of nearly $423,000 (off almost 18 percent) while condos are selling at a price of about $287,000 (also down about 18 percent).

Of course, not all San Diego neighborhoods are created equal. The beautiful La Jolla is only down about 12 percent.

All of this bodes well if you're looking to buy a single family in San Diego, Coronado, La Jolla, Solana Beach, Scripps Ranch and more.

What about condos? Prices are down on condominiums as well, so if you can afford to buy, now is definitely the time. And there are many on the market. During the height of the real estate boom, people were snapping up condos and flipping them. Flipping is the process of buying as low as possible, waiting only a short period of time as the market rises, and then re-selling the property for a profit. Now that San Diego real estate isn't moving as quickly as it was even just a year ago, in 2007, the only flipping that's going on might be pancakes on a Sunday morning. Or flipping out because you're stuck with an unwanted condo. Prices in downtown San Diego, East Village, Gaslamp Quarter, Horton Plaza and the Marina are all down, which means the possibilities for buyers is way up.

Why buy a condo? They make great rental properties; they're perfect if you're looking to downsize your home; and they also perfect if the economy is forcing you to sell a bigger home.

Condos, like single-family homes are available all over the city and county of San Diego. If you're thinking about buying a condo, there are several things to consider that might not be relevant with single-family homes.

1. Home Owner Association Fees or HOA. In addition to your mortgage, every month you'll pay for landscaping, trash removal and more in the form of a monthly fee. These fees can range from several hundred to several thousand dollars every month. Every month. Find out what the fees include and ask questions like when was the roof last replaced and how often the building is painted.

2. CC&Rs. These are the rules of the property and will include items such as whether renting out your condo is allowed, if there are age restrictions on tenants and when you can use the pool and tennis courts.

3. Appearance. How do the building, sidewalks, common driveways and other common areas look? This will tell you a lot about how the property is cared for (and how your HOA fees are used).

4. Financial statement. As an owner, you will be responsible for electing a board so it's up to you to find out how the association manages its money.

5. Talk! Visit the property on a Saturday or Sunday, when there are likely to be residents out and about, and stop for a quick chat, if they're willing of course. Explain that you're thinking about buying. Listen to what they way and watch how they react. It will tell you a lot about the property.

Regardless of whether you decide to buy a single-family home in northern San Diego County or Coronado or a condominium in downtown San Diego, always negotiate. As a buyer, you're in a stronger position than ever!

And always make sure you have a good real estate agent to help!