The New Market

San Diego County Real Estate News

San Diego Real Estate News

This San Diego Real Estate information is provided by a Licensed California Real Estate Appraiser

[HOME

Previous information on the San Diego Housing Market

March 2006
We have been watching the news for years… Watching the incredible increases in home prices over the past 5 years. Everyone said the bubble was about to burst any day. Fueled by low interest rates, the prices of homes in San Diego County and for the most part throughout the United States skyrocketed. When will it stop?

Today is the 3rd of March, 2006. Where are we now? If this market was not driven by supply and demand, what are the chances that home prices will increase at a much slower rate of appreciation over the next five or so years, or will there be massive corrections in the San Diego Real Estate market?

I know when I moved to San Diego in the late 80's, it was difficult to sell a home and prices seemed incredibilly low to me coming from the Bay Area where I was told I would never be able to afford a home. In the mid to late 90's San Diego’s economy was getting better and housing prices started to creep up towards their fair market value. Houses in San Diego County were still quite affordable.

In an attempt to stimulate a faltering economy after the dot com bust, stock crash and the 09/11 attacks, there was a series of interest rate slashing. Mortgage companies jumped into the action, sending out more refinance and mortgage offers than AOL had previously sent out their plastic clad drink coasters. Fueled by lowered lending standards and new loan packages, people overextended their credit and were willing to take on much more risk anticipating never ending future gains.

By 2005 with housing prices continuing to set record levels, affordability in San Diego County was also hitting record lows. What would help this situation? Either houses need to become more affordable or wages need to increase. I have a feeling we won't be seeing any large wage increases throughout every industry soon.

Being a real estate appraiser in San Diego, I have seen some areas already experiencing value adjustments up to 25% of their value. The areas are all around the county, but primarily in the areas that received the fastest and highest rates of appreciation over the past 2 years. I always tell people that complain that their appraisal is lower than an appraisal or purchase a year ago that if they plan on staying in their home, then they shouldn't worry too much and that these things usually happen in cycles. Any amount the lost in the past, they should be able to recover sometime in the future.

For those that were banking on selling their real estate for a huge profit over the next few years, or that have over extended their credit might have a little more to worry about. If you have not already converted your interest only mortgage to a loan package. I suggest you contact your mortgage company today.

If you would like more information on a home appraisal or to find a really honest mortgage company. Please visit San Diego Appraisals.

© 2006 : Bryan Knowlton : Appraise All Real Estate The New Market - Return To Home Some of my resources:
Real Estate Services in San Diego County : Best Real Estate Appraiser in San Diego


© 2014  Excellent Productions  - PO BOX 99916 - San Diego, CA 92169