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Monday, Jan 30, 2023
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Declining Home Prices Boosting Sales

Bargain hunters continued to scoop up discounted homes in September many of them in foreclosure — as prices continued their slide, according to the San Diego Association of Realtors using statistics from Sandicor’s multiple listing services.

Median prices on detached homes fell 3.8 percent to $375,000, which is nearly 32 percent lower than September 2007; and fell 4.2 percent on condos to $229,000, which is 32 percent lower than September 2007.

The median sale price of a house listed on the MLS in September 2007 was $549,500.

In San Diego County, there were 1,321 notices of default mailed to homeowners last month, as well as 3,096 homes either scheduled for auction or already sold at auction, according to ForeclosureRadar.com, based in Discovery Bay.

O’Toole says average discounts offered by lenders at foreclosure auction is 37.4 percent and a third of them are discounted by 50 percent or more.

In San Diego, falling prices have increased home sales, which rose 6.4 percent in September from August on freestanding houses and 7.9 percent on condos.

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So far this year, there have been 13,336 listed houses sold, which is a 4.67 percent increase compared to last year, but only 6,905 listed condos sold, which is a 5 percent decrease.

“Pricing is a matter of supply and demand. The level of activity we are seeing indicates that consumers are excited about the opportunities to invest in San Diego real estate,” said Lori Steahling 2008 SDAR president. “As this trend continues, prices should stabilize and go up.”

Steahling says she encourages potential home buyers to take advantage of the current Federal Housing Administration loan limit of $697,500 for first-time home buyers that qualify for the program.

“We are assured on a regular basis that money for residential home loans is readily available,” Steahling says.

However, new Fannie Mae Guidelines issued two weeks ago following the federal government takeover of the mortgage giant, limit individuals to a total of four outstanding mortgage loans, which will crimp investor activity and extend the time of existing inventory on the market, says Brian Yiu, founder of HouseRebate.com.

, Ned Randolph

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