Slump In San Diego Home Market
The San Diego real estate market is in a slump. Since April this year, foreclosures on San Diego homes have been very high. In fact, in April, San Diego home foreclosures went up by 600 per cent, its highest point, in over 25 years.
Ever since the slump in the San Diego real estate market earlier this year, fewer homes are changing hands. San Diego house listings that once ran to several hundred pages have thinned considerably. More than 1,707 houses and condos were foreclosed during the first four months of 2007, compared to just 238 in the first four months of 2006.
The fall in the San Diego real estate market is causing San Diego mortgage brokers to offer more incentives and discounts on San Diego homes. A lot of sub prime loans are being offered by San Diego brokers to homeowners in the county.
The slump in the San Diego real estate market is already reflecting itself in its prices. The average price of a San Diego house went down from $604,250 in 2005 to $601,760 in 2006. However, the price of San Diego north county homes continued to hold tight. The median price of these homes was higher than the average for the county. The median price of a property in this area was $635,000.
San Diego loan brokers are expecting the prices to spiral downwards for the rest of the year as well as see more foreclosures for the year. According to recent data, more than 10 per cent of the 700,000-to-750,000 mortgages in San Diego County are of the sub-prime variety.
