According to the report, one in five sellers sold because of foreclosure proceedings, the need for a short sale, or faced an impending Notice of Default. This is a 6 percent increase from 2007. While the sale of foreclosures created record home sale figures, up 12 percent to 395,600 in 2008 statewide, Leslie Appleton-Young, C.A.R. Vice President and Chief Economist stated that "many home sellers sold their properties at a loss, as price declines eliminated equity gains."
Good News for Long Term Homebuyers
There was some significant good news for long term investors in real estate, however. Home sellers that owned their properties for five years or more and had not refinanced experienced a much lower percentage of loss. Only three percent of sellers who had owned their homes for more than five years experienced a net loss on their sale in 2008, while 47 percent of sellers who had owned for less than five years experienced a loss. Also good news, homes in the mid-to-upper price range were less likely to experience a loss at sale last year.
San Diego Home Prices Consistent with Housing Market Report
Properties in San Diego experienced similar declines in home prices, down 30.1% in 2008 over the prior year. However with mid-to-upper priced homes falling at a slower rate, and in fact modest gains in December over November, 2008, the San Diego housing market could be signaling the start of the 2009 market rebound. Homebuyers hoping to take advantage of record low prices on San Diego foreclosures should act quickly. As distressed properties are sold fewer San Diego bank owned homes will be available, driving prices higher.
As the Housing Market Report indicates, owning your property for five years or more yields the greatest gains at sale so act now to get in on the ground floor of the current San Diego real estate investment market. Contact Richard Elias today at 1-800-474-1919 to find out how you can use the California Housing Market report to your advantage and schedule a showing of the best San Diego bank homes today.
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2008 Housing Market Report Shows Sales Up, Prices Down
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