Thursday, September 18, 2008

San Diego housing market

Quick summary: the median home price in San Diego county's down to $350K. That's down 26% from a year ago, the lowest it's been in 5-1/2 years. But there's another number that should scare anyone invested in real estate: 43% of August's sales were of foreclosed properties. That's never a good sign. And it's going to get worse. By next year I expect the median price to be down under $300K, heading for $250K. That's going to make it almost impossible for people who bought at the $400K peak to sell their houses without taking a fatal loss. And many of them won't be able to afford to keep up the payments.

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