Ø Compared to 1 mo ago, 72% of our zips either went up in market value or stayed essentially the same (within +/-5% market value). Here, Bay Park / Old Town with a 23% increase, 6 houses sold and Hillcrest / Mission Hills with a 17% increase, 8 houses sold, lead the pack over the past month.
Ø Compared to 2 mos ago, the market value of 72% are still either a higher value or stayed essentially the same (within +/-5%) as they were 2 mos ago. The leaders in the 2 month category are Tierrasanta with a 27% increase, 8 houses sold and Point Loma with a 24% increase, 8 houses sold. And, 55% of zips have shown an increase or stayed the same in market value for the past 2 mos straight.
Ø Compared to 1 year ago, we have 83% of zips with a market value either higher in market value or essentially the same (within +/-5%) compared to 1 yr ago. Here we have South Park / Golden Hills leading the pack with a 44% increase and 13 houses sold above market values of 1 yr ago
To summarize: The below chart gives you an excellent overview of San Diego by comparing the percentages of my tracked zip codes that either increased or held steady in home value: FEB 2010 CONDOS HOUSES 1 MO AGO 62% 72% 2 MO AGO 62% 72% 1 YR AGO 54% 83%
Bottomline: We are continuing to improve our property values here in the majority of San Diego zip codes and for you buyers, prices are continuing to sneak upward although the good news for all of us, both buyers & sellers is, interest rates remain at or very near the lowest interest rates in the last 30 years. Keep an eye out as we progress into this winter for price dips simply because prices always dip a bit in the winter months, and, I expect the same to be true this year as well as in the next few months as we move forward. That being said, financially this winter may be the greatest, prime time for buyers to hit the market at it's "lowest point" before prices start moving back upward next spring/summer. Notice that the percentage of zips with increasing prices is getting larger. Indeed, all categories in the brief comparison chart above shows absolutely every single category has better than half of the properties increasing in market value. If our current trend over the past year continues, we will see next spring/summer home prices even higher than they were this year.
Speaking of winter dip in prices, there is a class of homes called "shadow inventory". Huh?! ...... these are simply homes that banks have repossessed (foreclosed) and which are now owned by the bank, not the individual anymore. Banks will often hold on to many of these & not sell them immediately for various reasons, perhaps tax write-offs, needed repairs, hope that prices will rise as they have been, etc. This is very exciting! Several very large, national banks have said they are planning to put these on the market this winter! When winter prices drop, "holy-moly" as Harry Carey would say, this one will be out of the park. Whether you are looking to buy a home to live in or to buy for investment purposes as a rental property, you seriously will not find a better time than this fall & winter. For investors, whether experienced or new, I personally know of several properties which are being sold at prices that will mean your monthly mortgage payment will be LESS than the amount of going rental prices - IMMEDIATE POSITIVE CASH FLOW! In one condo complex (converted in 2006), there are units selling in which the going MONTHLY RENT is close to, if not DOUBLE THE MONTHLY MORTGAGE PAYMENT. Let's do some research, you will be amazed at what is out there! Then you decide .........
Cheers Until Next Month! - Peg
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