The number of home sales in San Diego rose more than 56 percent in September, compared to September 2007, as median home prices fell by more than 30 percent in the same period, La Jolla-based MDA DataQuick reported Oct. 20.

The median price of a San Diego home or condo fell to $328,000 last month, compared to $470,000 in September 2007.

There were 3,366 homes sold last month in San Diego, compared to 2,152 in September 2007.

San Diego is tracking the regional Southern California market, which saw home sales rise by 65 percent in September, compared to the year before.

Home sales are picking back up after grinding to a halt last year when the credit crunch in August 2007 made “jumbo” mortgages for higher-end homes more expensive and harder to obtain.

Before the credit crunch, 40 percent of sales were financed with jumbos, then defined as more than $417,000. Last month just 13.2 percent of purchase loans were more than $417,000.

As a result prices began to plunge — a phenomenon that accelerated as home equity began falling and homeowners were unable to refinance adjustable-rate mortgages and lost their homes to foreclosures.

Foreclosure sales accounted for nearly half of resold homes in San Diego last month.

Home sales typically rose the most in areas where prices have dived and foreclosures have soared, MDA DataQuick reported.

One silver lining of falling prices was improved affordability. But MDA DataQuick President John Walsh cautioned that the housing market has yet to respond to the financial crisis that erupted last month.

“You have to view last month’s sales in the proper context,” Walsh said. “They represent escrow closings, which reflect purchase decisions made in mid- to late summer. That was before the dramatic worsening of the nation’s economic crisis in recent weeks. Over the next few weeks, our sales data will begin to show how the meltdown in financial markets this fall has impacted housing demand.”

— Ned Randolph