San Diego Home Buying and Selling Activity
Real Estate Market Update for December 2008
Purchases of single-family houses in San Diego shot up 94.9% in September 2008 from a year earlier, to 2,083 houses purchased vs. 1,069 in September 2007. First-time home buyers and investors alike have been eagerly competing for bank foreclosures and other bargain-priced properties. The median houses price was $360,000, with the greatest level of buying activity in the under-$500,000 sector.
In October the meltdown of the financial markets shocked the country, leading to massive government bailouts of banks and other financial service companies. Financing for Jumbo Loans (In San Diego, over $697,000) became ridiculously expensive as compared to conforming federally guaranteed mortgages offered by Fannie Mae and Freddie Mac. This effectively stalled purchases and sales of upper end properties.
In November 2008, mortgage interest rates dropped to levels not seen since the real estate boom. Rates for conforming, super-conforming, and jumbo loans all dropped. Job and income documentation rules have tightened, but buyers have rushed to take advantage of the low rates and reduced home prices. The federal government has also announced plans to introduce home-buyer programs with interest rates as low as 4 1/2% for 30-year fixed loans. With no lack of demand for homes in San Diego at the current interest rates and prices, any additional interest rate reductions will certainly stimulate San Diego home buying even further, and possibly cause home prices to rise again.
Detached Homes (Houses) Listed and Sold During the Month Of November 2008