San Diego Housing Market Shows Signs of Spring Splurge

Is the San Diego Housing Market In For A Lift This Spring?

san diego housing marketThe San Diego housing market‘s prolonged, dull winter may ultimately be approaching a springtime boost.

Recent information indicates the decline in home valuse easing, an increase in sales of new homes and foreclosures in San Diego falling to five year lows.

The reduced number of foreclosures is viewed as crucial by many of economists, since the flood of these homes for sale at a discounted price has become a substantial burden on real estate prices.

Housing prices continue to be deflated from the peak in 2007, a time when the average home in Southern California sold for over half a million dollars. The median price last month was $280,000.

The overall economy has seen improvement with retail sales, business revenue, unemployment along with other factors showing consistant gains. The San Diego housing market continues to be among the final holdouts, but experts observe that prices have stabilized and home sales have been gaining.

Notices of default, the initial step of the foreclosure procedure, fell to 56,258 statewide within the first 90 days of this year, a 17.6 % decline from this time last year, DataQuick of San Diego reported Tuesday. That has been the lowest quantity of default notices filed ever since the second quarter of 2007.

Banking institutions continue to posses many foreclosed homes on their own books, and several experts have forecasted that real estate prices could deteriorate once again if banks unload these homes into the recuperating market. Some analysts note that the dreaded “second wave” is less likely, indicating that the lenders could be acting in opposition to their particular interests by flooding the market and causeing values to drop even further.

Gambling on the recovery, investors composed a record share of buyers in San Diego throughout the first 8 weeks of the year, according to DataQuick. According to Zelman & Associates, a New York housing research firm as increasing numbers of foreclosed homes in struggling communities are full of renters, progressively more buyers will develop interest in owning.

A number of elements continue to restrain a significant turn-around in the San Diego housing market, such as a weak employment market, restricted mortgage lending standards as well as the large number of homeowners who are underwater on their mortgages, leaving them basically stuck in their homes. Although this news shows indications of progress, we still have a lot of hurdles to over come before the San Diego Housing market is back to normal levels.

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Category : Blog &Clairemont Housing News &Foreclosures &How's the Market?

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