When Will Home Prices Turn Around in San Diego?

Nationwide, the U.S. housing market remains deep in the doldrums and economists expect prices to fall another 5% to 10% in many places.

Email us questions about home prices in your area at [email protected]

In a few of the hardest-hit areas, such as Detroit, homes have become so cheap that it no longer makes sense to rent.

In other places, like Los Angeles, price drops haven’t stopped, but they’ve slowed, and homes are selling faster. Plus, even if your area is still hurting, your neighborhood might be on its way back.

Here’s what the economists are saying, when the rebound arrives, desirable zip codes will see price jumps first.  So once again it is Location, Location, LOCATION!

To estimate where your own house lies on the recovery spectrum, answer the following questions.

HOW FAST ARE NEARBY HOMES SELLING?

The faster the homes go in San Diego, the more probable the turnaround.

Now, know that monthly home-value numbers are skewed by seasonal changes, and prices are usually the last thing to budge when a market turns the corner.

What to do: Email us at [email protected] for the number of listings now on the market in your area and the number of homes sold over the past year.

Let’s say there are 100 listings and there were 240 sales last year, or an average of 20 per month. That equals a five-month supply, which is considered stable. More than six months and it’s a buyer’s market, less than three and sellers probably have the upper hand.

WHAT’S THE FORECLOSURE FACTOR?

Not surprisingly, a decrease in foreclosures is an encouraging sign. But the official data aren’t entirely reliable. Sometimes the processing time delays it all.

If there are tons of foreclosures or short sales in your neighborhood then expect a drop in values.

IS YOUR AREA PRIMO?

Economists believe that as buyers return, they’ll naturally grab places with shorter commutes and better schools and amenities.

The moral of the story is once again Location, Location, Location!

You won’t buck the larger market trend entirely, but once things are cranking in your favor, your home will sell first.

For more info contact Krista Lombardi at [email protected] #1 Realtor in San Diego.