I
San Diego California Housing Double Dip
by: Bob Schwartz, San Diego
California Real Estate Broker, Certified Residential Specialist
Recently
announced by Forbes:
“The
final figures for the U.S. housing market’s performance thus far
in 2010 won’t be officially released for several weeks. But a
review of the best preliminary data available indicates that the
recovery in home values that began in early 2009 has stalled. A
second dip is clearly under way in some places, if not across
the entire U.S.”
DataQuick
recently released the information that sales of condos and homes
totaled 3,885 for San Diego in June 2010. That was the highest
figure in four years; it is still 17 percent below the average
activity for that month since the company began tracking the
market in 1988.
Figures provided by
FICO Inc. show that 25.5 percent of consumers — nearly 43.4
million people — now have a credit score of 599 or below,
marking them as poor risks for lenders. It’s unlikely they will
be able to get credit cards, auto loans, or mortgages under the
tighter lending standards banks now use.
The San Diego
Association of Realtors reported active listings on the market
stood at 12,047 as of Monday, up from 9,209 a year ago.
Keep in mind, a large number
of properties that closed in June reflected sales influenced by
the Federal tax credit which applied to homes that entered
escrow before April 30th.
In my
7-7-10 my post: San
Diego real estate 2010 2nd. Half Outlook … double-dips
I said that my local San Diego real estate market observations
indicated that we are heading into a double dip for the real
estate market.
The best seasonal
real estate marketing time of the year, combined with some of
the lowest home mortgage rates in 40 years, prices at 40% below
their 2005 peaks, and the tail end of the Federal tax credits,
could at best produce anemic real estate sales results.
Perhaps everyone is
missing one vital fact …. The real estate downturn that started
in 2005 was so severe and prolonged that it has broken the myth
that owning San Diego (or California) property was a sure way to
gain wealth through guaranteed appreciation.
Use of this article without permission is a
violation of federal copyright laws.
Bob Schwartz
is a Certified Residential Specialist, real estate broker specializing in
San Diego real estate Bob received his BBA
majoring in real estate & computer programming. Be sure to visit his popular
San Diego real estate blog
San Diego real estate library |
