SAN DIEGO REAL ESTATE AGENT BLOG » San Diego home owner

San Diego County housing prices rebound in February

Michael Carter - San Diego Real Estate Agent — Tue, 16 Mar 2010 00:08:28 +0000

San Diego County housing prices bounced back in February to reach a median $322,000 that was in the range of prices for much of last year, MDA DataQuick reported Monday.

The median, the midpoint of all prices, was up 5.6 percent from January’s $305,000 and up 13 percent from February 2009. The January median price had fallen 7.5 percent from December’s $330,000, reflecting an active market in low-cost homes and little activity in moveup properties.

February’s numbers represented the highest year-over-year increase since March 2005, a few months before the median peaked at $517,500 and then fell to a low of $280,000 in January 2009.

But housing experts caution that January and February do not usually set the pace for sales and price trends for the year because of their traditionally low volume of activity.

Single-family resale homes had a median price of $358,500, up 3.9 percent from January’s $345,000 and just about the same as the December median; the figure was 12 percent ahead of year-ago levels. Condo resales stood at $219,500, up 8.9 percent from January’s $201,500 and nearly equal to the median price in December; it was 12.6 percent ahead of February 2009’s $195,000. The new-home median, including condo conversions, was $460,000, up 13.3 percent from January’s $406,000 and the highest since last May; it was 1.8 percent higher than in February 2009.

Sales in February stood at 2,465, up 6.2 percent from January but 8 sales lower than in February 2009. Single-family resales were below year-ago levels, down 4.2 percent, a reflection of the low inventory of homes for sale, especially low-cost distressed properties, as lenders try to modify loans rather than initiate foreclosure proceedings. Many analysts expect foreclosures to increase this year and thus lead to more sales but perhaps lower prices overall.

By Roger Showley

Michael Carter
San Diego Real Estate Agent
MTC Future Realty
(619) 488-5774

Affordability of housing dips in county

Michael Carter - San Diego Real Estate Agent — Thu, 18 Feb 2010 18:26:56 +0000

San Diego County’s housing affordability has again dipped below the 50 percent level, the National Association of Home Builders said yesterday.

The 48.1 score in the Housing Opportunity Index represents the percentage of homes sold in the fourth quarter that a median-income household could afford using standard underwriting guidelines.

The new level positions San Diego as the 13th-most unaffordable market among 227 areas surveyed.

San Diego’s affordability peaked at a record 58.8 percent in the first quarter of last year. The region ranked 31st among least-affordable areas in the third quarter of 2008, its best showing in the 19 years of the survey.

The latest figures were based on a fourth-quarter median price of $319,000 for a single-family resale home, a 30-year, fixed-rate mortgage interest rate of 5.1 percent and a down payment of 10 percent. The median household income in the quarter was $74,900, and the survey assumes that a household will spend no more than 28 percent of income on housing.

Nationally, the index stood at 70.8 percent. Eleven of the 20 least-affordable markets were in California. New York ranked first at 19.7 percent and San Francisco was second at 22.3 percent.

By Roger Showley, UNION-TRIBUNE STAFF WRITER

Michael Carter
San Diego Real Estate Agent
MTC Future Realty
(619) 488-5774

Property Values Fall Again

Michael Carter - San Diego Real Estate Agent — Thu, 11 Feb 2010 02:35:27 +0000

U.S. home values declined another 5 percent in the fourth quarter, compared to the previous year. This was the 12th straight quarter of year-over-year declines, reported Zillow.com.

More than 29 percent of homes sold in 2009 in the U.S. went for less than sellers originally paid for them, Zillow said, estimating that more than 20 percent of U.S. home owners owe more on their mortgages than their properties are worth.

“While the next few months are likely to bring further home value declines in most markets, we do expect to see a national bottom in home prices by the middle of this year,” Zillow Chief Economist Stan Humphries said in a statement. “Thereafter, home values are likely to bounce along the bottom with real appreciation remaining negligible for some time.”

Source: Bloomberg, Daniel Taub (02/10/2010)

Michael Carter
San Diego Real Estate Agent
MTC Future Realty
(619) 488-5774

10 Home Features Buyers Want

Michael Carter - San Diego Real Estate Agent — Mon, 01 Feb 2010 19:36:05 +0000

Home designers and builders speaking at the recent International Builders Show in Las Vegas say that buyers are seeking cost-effective features and rejecting things that don’t have lasting value.

“It’s all about family togetherness – casual living, entertaining and flexible spaces,” says Carol Lavender, president of the Lavender Design Group in San Antonio.

Paul Cardis, CEO of Avid Ratings, which conducts an annual survey of buyer preferences, identified these must-haves in new homes:

Large kitchens with islands
Energy efficiency, including energy-efficient appliances, super insulation, and high-efficiency windows.
Home offices
Main-floor master suite
Outdoor living space
Ceiling fans
Soaking tub in the master suite and/or an oversize shower with a seating area
Stone and brick exteriors rather than stucco or vinyl
Community walking paths and playgrounds
Two-car garages, but three-car garages are even more desirable

Source: MarketWatch, Steve Kerch (01/30/2010)

Michael Carter
San Diego Real Estate Agent
MTC Future Realty
(619) 488-5774

December home sales down nearly 17 percent

Michael Carter - San Diego Real Estate Agent — Mon, 25 Jan 2010 15:51:12 +0000

WASHINGTON — Sales of previously occupied homes took the largest monthly drop in more than 40 years last month, sinking more dramatically than expected after lawmakers gave buyers additional time to use a tax credit.

The report reflects a sharp drop in demand after buyers stopped scrambling to qualify for a tax credit of up to $8,000 for first-time homeowners. It had been due to expire on Nov. 30. But Congress extended the deadline until April 30 and expanded it with a new $6,500 credit for existing homeowners who move.

“It’s ‘exit stage left’ for first-time homebuyers,” wrote Guy LeBas, an analyst with Janney Montgomery Scott.

December’s sales fell 16.7 percent to a seasonally adjusted annual rate of 5.45 million, from an unchanged pace of 6.54 million in November, the National Association of Realtors said Monday. Sales had been expected to fall by about 10 percent, according to economists surveyed by Thomson Reuters.

The median sales price was $178,300, up 1.5 percent from a year earlier and the first yearly gain since August 2007. However, some of that increase could be due to a drop-off in purchases from first-time buyers who tend to buy less expensive homes.

Sales are now up 21 percent from the bottom a year ago, but down 25 percent from the peak more than four years ago.

The big question hanging over the housing market this spring is whether a tentative recovery will stumble after the government pulls back support. The Federal Reserve’s $1.25 trillion program to push down mortgage rates is scheduled to expire at the end of March – a month before the newly extended tax credit runs out.

Last year, first-time buyers were the main driver of the housing market, but their presence is on the decline. They accounted for 43 percent of purchases in December, down from about half in November, the Realtors group said.

The inventory of unsold homes on the market fell about 7 percent to 3.3 million. That’s a 7.2 month supply at the current sales pace, close to a healthy level of about 6 months.

Total sales for 2009 closed out the year at 5.16 million, up about 5 percent from a year earlier. That was the first annual sales gain since 2005. But prices fell dramatically last year, declining 12.5 percent to a median of $173,500, the largest decline since the Great Depression.

Though the results missed Wall Street’s expectations, the Realtors’ group says there are signs the market is finally stabilizing.

“There is some sustainable momentum building in the housing market right now,” said Lawrence Yun, the group’s chief economist. However, he cautioned that the recovery will depend on whether the economy starts adding jobs in the second half of the year.

Many experts project home prices, which started to rise last summer, will fall again over the winter. That’s because foreclosures make up a larger proportion of sales during the winter months, when fewer sellers choose to put their homes on the market.

Despite fears that home prices are starting to fall again, some analysts still believe the worst is over.

“We do not believe it is fair to consider this a double dip in the housing market,” Michelle Meyer, an economist with Barclays Capital, wrote last week. “The recovery is still under way, but hitting some bumps in the road.”

By Alan Zibel, Associated Press

Michael Carter
San Diego Real Estate Agent
MTC Future Realty
(619) 488-5774

BUYING A HOME AFTER A FORECLOSURE

Michael Carter - San Diego Real Estate Agent — Wed, 20 Jan 2010 16:06:06 +0000

Put your fears aside. Just because you have bad credit, filed bankruptcy or gone through a foreclosure does not mean you cannot buy a home. You most certainly can buy a home with bad credit. But you’re going to pay more than a borrower who has sparkling credit.

The Waiting Period After Foreclosure / Bankruptcy

The period between bankruptcy filings is seven years, but the ding to your credit report stays for 10 years.
For better rates with a conforming loan, the wait is four years after filing bankruptcy.
FHA guidelines are two years after a foreclosure, which means you could qualify for as little as 3.5% down.
Hard-money lenders will often make loans six months after filing bankruptcy or a foreclosure, but will a require 20 to 35% down payment. The interest rate will be very high and the loan terms are not as favorable; many will contain prepayment penalties and be adjustable.
Subprime lenders (not to be confused with hard-money lenders) are no longer making 100% financed loans.

How to Improve Your Qualification For a Conforming Loan

Obtain a major credit card. It’s easier to get than you would think after a bankruptcy, for three reasons:

A bankruptcy filing gives you a “fresh start.”
The lender knows you have no debt.
You can’t file bankruptcy again for another 7 years.

Show steady employment on the job for one to two years.
Earn a regular salary or wage (this does not apply to self-employment).
Save a down payment of at least 10%.
Avoid late payments and continue to pay your bills on time; do not fall behind.

How FICO Scores Affect Interest Rates

Differences among FICO scores and how that relates to the interest rate borrowers are charged. The following numbers are in comparison to the interest rate a borrower with a 600 FICO score would pay who did not file bankruptcy or lost a previous home to foreclosure. This scenario assumes the borrower with bad credit is putting down 10% of the purchase price in cash and met the seasoning requirements above.

FICO Score of 600 to 640: + 1.625% over prevailing rate. This means if a borrower with good credit is paying 5.875%, your interest rate would be 7.5%.A $200,000 amortized loan at 7.5% would give you a monthly payment of $1,398.
FICO Score of 560 to 580: +2.875% over prevailing rate. This means if a borrower with good credit is paying 5.875%, your interest rate would be 8.75%.A $200,000 amortized loan at 8.75% would give you a monthly payment of $1,573.
FICO Score of 540 to 559: +3.425% over prevailing rate. This means if a borrower with good credit is paying 5.875%, your interest rate would be 9.3%.A $200,000 amortized loan at 9.3% would give you a monthly payment of $1,653.
FICO Score Under 540 to 500: +3.875% over prevailing rate. This means if a borrower with good credit is paying 5.875%, your interest rate would be 9.75%.A $200,000 amortized loan at 9.75% would give you a monthly payment of $1,718.
FICO Score Under 500: +6.25% over prevailing rate. This means if a borrower with good credit is paying 5.875%, your interest rate would be 12%. With a FICO of less than 500, you will not qualify for a 90% loan, but you may qualify for a 65% loan, therefore, you need to increase your down payment from 10% to 35%.A $200,000 amortized loan at 12% would give you a monthly payment of $2,057.

Comparing Identical FICOs Against Borrowers With No Foreclosure or Bankruptcy

A borrower without a bankruptcy or foreclosure with a 600 FICO would receive an interest rate of 5.875% and pay a monthly payment of $1183 on a $200,000 amortized loan. You can see that filing bankruptcy or having a foreclosure on your record, even with a FICO score of 600, results in an increase in a mortgage payment of $215 over that of a borrower without a bankruptcy or foreclosure. However, that difference in payment will let you buy a home.

Alternative to Bank-Financing

Borrowers who are not satisfied with the rate offered by a conforming lender might want to look at buying a home with seller financing. Land contracts offer a viable alternative. Typically, seller financing offers:

No qualifying.
Lower interest rates.
Flexible terms and down payments.
Fast closing.

You will want to check with your lender every year or so to find out if you qualify for a refinance at a lower rate.

By Elizabeth Weintraub

Michael Carter
San Diego Real Estate Agent
MTC Future Realty
(619) 488-5774

Home prices climb for 2nd straight quarter

Michael Carter - San Diego Real Estate Agent — Tue, 24 Nov 2009 15:48:17 +0000

NEW YORK (CNNMoney.com) — Home prices rose for the second consecutive quarter but remained nearly 9% lower than a year earlier, according to a housing market report issued Tuesday.

Prices nationwide rose 3.1% in the three months ended Sept. 30, according to the S&P/Case-Shiller Home Price Index, a closely watched gauge of housing market direction. That followed a similar 3.1% rise during the second quarter of the year.

Prices were still below a year ago, however, down 8.9% compared with the third quarter of 2008. Nevertheless, that’s an improvement from the double-digit price decreases the index had been reporting; the second quarter year-over-year decline was 14.7%. Prices had dropped 19% year-over-year during the first quarter of 2009.

“We have seen broad improvement in home prices for most of the past six months,” says David Blitzer, Chairman of the Index Committee at Standard & Poor’s.

The Case-Shiller 20-City Composite index posted its fifth monthly increase in a row in September, rising 0.3% from August levels.

The worst performing market continued to be Las Vegas, where prices have dropped for 37 consecutive months. They’re now 55.4% off their highs.

Midwestern cities staged a comeback in September, with Minneapolis and Detroit prices each gaining 1.8%, the most of any of the 20-cities covered. Chicago prices jumped 1.2%; San Francisco climbed 1.3%; and Los Angeles and Phoenix both rose 0.8%.

Stopping the home price slide is an important factor in any economic recovery. Falling prices increase the number of “underwater” homeowners, those who owe more on their mortgage balances than their homes are worth.

Underwater mortgage borrowers are much more likely to lose their homes to foreclosure. Indeed, it’s a crucial factor in whether people lose their homes or not, as Mark Goldman, a San Diego State University real estate professor pointed out.

“If they have a home worth $300,000 and they owe $250,000 and can’t pay their mortgage, they’ll just sell the house,” he said.

It’s when they have a house worth $200,000 and they owe $250,000 that these people default, because the sale of the house would not pay their whole debt.

A report from First American CoreLogic released Tuesday, revealed that nearly a quarter of all mortgage borrowers are underwater. That, as well as the ongoing foreclosure problem, has contributed to doubt about the staying power of the recent price trend.

“I think it’s temporary,” said Pat Newport, a real estate analyst with IHS Global Insight. “I can’t see home prices stabilizing as long as we have that problem.”

According to Newport, foreclosures could worsen over the next several months as many toxic loans go through resets, making them much less affordable for their borrowers.

A significant contributor to the improvements in the housing markets have been programs such as the tax credit for first-time homebuyers, according to Bob Walters, the chief economist for Quicken Loans.

“[But] the real driver in all of this — from home sales to home pricing appreciation — has been the protracted run of favorable mortgage rates,” he said. “It will be interesting to see how home prices react when we see rates begin to increase, as they are sure to do over time.”

By Les Christie, CNNMoney.com staff writer

Michael Carter
San Diego Real Estate Agent
MTC Future Realty
(619) 488-5774

Big Rebound in Existing-Home Sales

Michael Carter - San Diego Real Estate Agent — Tue, 27 Oct 2009 03:11:36 +0000

Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of REALTORS®.

Existing-home sales—including single-family, townhomes, condominiums, and co-ops—jumped 9.4 percent to a seasonally adjusted annual rate of 5.57 million units in September from a level of 5.10 million in August, and are 9.2 percent higher than the 5.10 million-unit pace in September 2008. Sales activity is at the highest level in more than two years, since it hit 5.73 million in July 2007.

Lawrence Yun, NAR chief economist, said favorable conditions matched with a tax credit are boosting home sales. “Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home,” he said. “We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery.”

Even with the improvement, Yun said the market is underperforming. “Despite spectacular gains in the stock market, principally from the financial sector recovery, most of the 75 million home-owning families have more wealth tied to their homes. Home values could soon turn consistently positive and help the broad base of middle-class families, but we are not there yet,” he said.

Conditions for First-Time Buyers
Early information from a large annual consumer study to be released on Nov. 13, the 2009 National Association of REALTORS® Profile of Home Buyers and Sellers,shows that first-time home buyers accounted for more than 45 percent of home sales during the past year. A separate practitioner survey shows that distressed homes accounted for 29 percent of transactions in September.

NAR President Charles McMillan said affordability conditions remain historically high. “Potential first-time buyers can take heart in that affordability conditions this year are the highest on record dating back to 1970, but with the first-time buyer tax credit scheduled to expire at the end of next month, people could hold back from entering the market,” he said. “Our read is that housing overshot on the downside because homes are selling for less than replacement construction costs in much of the country, and the home price-to-income ratio has fallen below the historical average.”

Inventory Falls
Total housing inventory at the end of September fell 7.5 percent to 3.63 million existing homes available for sale, which represents an 7.8-month supply at the current sales pace, down from an 9.3-month supply in August. Unsold inventory totals are 15.0 percent below a year ago.

“The current housing supply is the lowest we’ve seen in two and a half years,” Yun said. “If we could continue to absorb inventory at this pace, home prices would return to normal, modest appreciation patterns next year.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.06 percent in September from 5.19 percent in August; the rate was 6.04 percent in September 2008.

Home Sales Breakdown
The national median existing-home price for all housing types was $174,900 in September, which is 8.5 percent lower than September 2008. Distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area.

Single-family home sales rose 9.4 percent to a seasonally adjusted annual rate of 4.89 million in September from a pace of 4.47 million in August, and are 7.7 percent above the 4.54 million-unit level in September 2008. The median existing single-family home price was $174,900 in September, which is 8.1 percent below a year ago.

Existing condominium and co-op sales jumped 9.7 percent to a seasonally adjusted annual rate of 680,000 units in September from 620,000 in August, and are 9.7 percent above the 561,000-unit pace a year ago. The median existing condo price was $175,100 in September, down 11.7 percent from September 2008.

Here’s the region-by-region picture:

Northeast: Existing-home sales increased 4.4 percent to an annual level of 950,000 in September, and are 11.8 percent higher than September 2008. The median price was $234,700, down 7.0 percent from a year ago.
Midwest: Existing-home sales jumped 9.6 percent in September to a pace of 1.25 million and are 7.8 percent above a year ago. The median price was $147,600, which is 1.0 percent below September 2008.
South: Existing-home sales rose 9.0 percent to an annual level of 2.06 million in September and are 10.8 percent higher than September 2008. The median price was $153,500, down 7.6 percent from a year ago.
West: Existing-home sales surged 13.0 percent to an annual rate of 1.30 million in September and are 5.7 percent above a year ago. The median price in the West was $219,000, which is 15.0 percent below September 2008.

Source: NAR

Michael Carter
San Diego Real Estate Agent
MTC Future Realty
(619) 488-5774

Home prices across area ending decline, data show

Michael Carter - San Diego Real Estate Agent — Tue, 20 Oct 2009 03:38:50 +0000

San Diego County’s three-year slide in home prices is ending, neighborhood by neighborhood, according to a quarterly breakdown from MDA DataQuick.

Eight out of 56 neighborhoods saw higher prices than a year ago, compared with only one or none in the recent quarters, DataQuick said. The findings are based on ZIP codes with at least 50 single-family-house resales in the latest three-month period.

Overall, the resale median price of $360,000 was down only 5 percent from $379,000 in the same quarter last year, a big improvement from the 24.2 percent slump from 2007, when it stood at $500,000.

Robert Brown, a Cal State San Marcos economics professor, said he has been watching price declines lessen since April.

“There certainly has been an uptick in North County in the last three or four months,” Brown said.

Escondido West (ZIP 92029) saw the biggest increase, 15.1 percent, from a median of $467,000 in the third quarter of 2008 to $537,000 this year, and Brown said relatively few distressed properties may be the reason.

Sue Scott, a longtime real estate agent in the area, said the semirural setting near Lake Hodges and low turnover in ownership have sustained values.

“I think we do better than elsewhere, comparatively,” Scott said.

DataQuick numbers back her up. The median for the Escondido West area is down 21 percent from the 2007 peak of $680,250. That compares with a countywide median decline of 35 percent from the 2006 high of $554,000 to $360,000 in the third quarter this year.

By contrast, many more areas continue to post lower year-over-year prices, with three central San Diego city neighborhoods among the five worst performers.

Golden Hill (92102), east of downtown, was off 32.3 percent to $152,250 and down 65.4 percent from its 2006 peak of $440,000.

Peter Dennehy, senior vice president at Sullivan Group Real Estate Advisors, said these fast-sinking neighborhoods were among the last to see an upsurge during the early-2000s bubble market. As prices elsewhere soared, desperate buyers with shaky financing bought there, where prices were lowest.

“They came late to the appreciation curve and really boomed in what I’d call the ‘unfortunate’ years, when subprime mortgages were quite prevalent,” Dennehy said of the worst-performing ZIPs.

Scott Holder of Aloha San Diego Properties in Golden Hill called the inner-city markets “schizophrenic” because investors outbid first-time buyers now.

“We have people that want to buy and can’t buy,” Holder said.

Many agents report that the inventory of homes for sale is shrinking because the supply of distressed properties is down — a situation that may change if an expected new wave of foreclosures materializes. The San Diego Association of Realtors said the number of active listings for detached homes this week stood at 5,670, down from 8,562 in mid-July.

Meanwhile, owners of nondistressed homes do not want to sell because they hope prices last seen in 2006 will return soon. That may not happen for 10 more years, agents say.

Analysts caution not to read too much into price trends, because they vary greatly in market mix. During one quarter there may be many small, low-priced houses that change hands, and in another, more higher-priced listings.

Mark Lau of WKL Financial, a real estate office in central San Diego’s City Heights neighborhood, said he was surprised that his area dropped 17.8 percent in the third quarter to a median of $183,000. That compared with $222,500 in the same period in 2008 and a record $411,000 for all of 2006.

“My feeling was it was going up,” based on multiple offers and overbids on foreclosure properties, Lau said.

In one recent case, a client made an all-cash bid of $190,000 on a home listed at $150,000. There were 38 offers, and it went to someone else.

“We got beat up so many times, we learned our lesson to go higher,” Lau said.

In Chula Vista, where prices continue to fall, Ramon Zamora of Executive Brokers Real Estate said frustrated first-time buyers will probably have to wait their turn.

Investors, although often offering less money, are making winning bids by paying all cash. They spend $5,000 to $20,000 on repairs and upgrades, then sell the homes to first-timers for thousands more than they invested.

“It’s not that it’s a better deal; it’s just the way the first-time buyer can get it,” Zamora said.

Ray Metcalf, a 30-year-veteran real estate broker in Oceanside, said he has backed out of the realty business for the time being because it is dominated by what he called “a bunch of barracudas” — bottom-fishing investors and banks eager to rapidly unload foreclosures.

“The industry is no fun anymore,” Metcalf said.

Linda Bell at Panda Realty in Poway characterized the market as being in a “frenzy.”

“Everybody just goes bananas over the cheap ones,” Bell said.

But she and other agents predicted continued problems in San Diego real estate if the economy continues in its weakened state with little growth and high unemployment.

“People who are not making money can’t buy a house,” Bell said.

By Roger Showley

Michael Carter
San Diego Real Estate Agent
MTC Future Realty
(619) 488-5774

SoCal home sales up, prices hold steady

Michael Carter - San Diego Real Estate Agent — Wed, 14 Oct 2009 14:29:46 +0000

Southern California home sales rose unexpectedly last month as price declines moderated, MDA DataQuick reported Tuesday.

There were 21,539 sales in the six-county region, including San Diego, up slightly from August’s 21,502, as low rates, federal tax credits and delayed closings reversed usual 9.5 percent August-September downturn. The total was 11 percent higher than in September 2008, the 14th straight year-over-year increase.

As reported Monday, San Diego’s sales rose from 3,306 in August to 3,454 last month.

The overall median for the region stood at $275,000, unchanged from August and 10.9 percent below year-ago levels, the smallest year-over-year decline since November 2007.

San Diego’s September median also was unchanged at $325,000 and just 0.9 percent below September 2008′s $328,000 – the smallest decline since June 2006, when there was a 1 percent annualized increase.

Orange and Ventura counties joined San Diego in seeing the first annual increase in existing-house prices in years.

Orange County’s median price for resale single-family homes rose 4.2 percent, from $480,000 in September 2008 to $500,000 last month, the first year-over-year increase since August 2007. Orange also was the first Southern California county to post an overall increase in median prices, up 0.9 percent to $429,000.

Ventura’s resale house median was up 2.2 percent, from $410,000 to $419,000, the first such year-over-year increase since October 2006.

San Diego, as reported Monday, saw its median house price increase 1.5 percent, from $360,000 in September 2008 to $365,500 last month, the first such gain since August 2007.

However, DataQuick said the increases were not due to increases in values as much as a change in market mix, with fewer low-cost distressed properties selling and more higher-priced homes closing escrow.

Regionwide foreclosure sales – houses and condos that had been foreclosed on at some point in the previous 12 months – represented 40.4 percent of all resales, down slightly from a revised 41.7 percent in August.

San Diego’s foreclosure count was 35.3 percent, up slightly from the revised 34.5 percent in August. It was the first month-to-month increase for San Diego since January, when the all-time high of 55 percent was reached.

The September boost was attributed to a possible delay in closings due to a slowdown in appraisals and the continued flow of short-sale transactions. These involve homes sold for less than the outstanding mortgage balance and usually take much longer to go through escrow because lenders must approve such sales.

Analysts also said buyers were eager to take advantage of the $8,000 federal first-time-homebuyer tax credit, scheduled to expire next month but now being considered for extension in Congress.

Low interest rates also are thought to be drawing in buyers.

Roger Showley

Michael Carter
San Diego Real Estate Agent
MTC Future Realty
(619) 488-5774