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San Diego Home Prices are Falling

Chickenlittle01Home values are down and price reductions happen every minute. Foreclosures and short sales are everywhere and developers are doing whatever they can to get rid of their unsold inventory. Right? Is the sky really falling?

Well some of this is true, but as with everything in life, you need to look at the details. Yes home values are down “ but compared to what? Last week? Last month? Last year? For the most part, Downtown condos are worth approximately what people purchased them for 3“4 years ago. In fact, the median home price last year for the 92101 zip code, was $538,000. 2006 had a median sales price of $590K and 2004s median sales price was even higher, at $620K(based on DataQuicks statistics). No one, at least not any sane person, is denying that home values in San Diego have gone down over the years.

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This is why its even more important to have a good Realtor on your side. I primarily work with buyers and team up with my senior associates(who are in the top 1% of Realtors nationwide) when it comes to listings. This way I can dedicate my time to looking for deals for you, while my more experienced partners work on getting your home sold (I can be as much, or as little, involved in the situation as you, my client, feels comfortable with).

For example, in December of 2006, I helped some clients purchase a home in La Vita. La Vita was built in 2005 and has 304 units, consisting of a high rise, mid rise and several town homes. The home I helped my clients purchase, was a 3 bedroom condo with 2 balconies and over 1300 square feet. As you know, 3 bedrooms are a rarity Downtown, so my clients were especially excited when we closed the deal for $195,500 off the original list price. Today, about 14 months later, comps indicate that the home is now worth somewhere in the mid $600,000 rangenot bad considering most homes have lost 10“30% in the last year. By the way, there was a recent sale at Treo, on a smaller 3br/2ba condo, for $635K “ ANDthis sales price was based on a total of 3% commission(based on 6% it would have sold for over $654K).

Click here to see all the currently available homes for sale at La Vita.

Another client I helped Downtown, purchased a condo over at the Harbor Club just over a year ago. I helped this client buy a 1 bedroom on the 10th floor for only $550,000. This was a $209,000 price reduction I got her. In addition to this, we were able to negotiate 2 full years of HOA dues paid by the seller “ thats was over $20,000 I saved my client. Half a million dollars for a small 1 bedroom?! It might sound like a lot, but when you look at others that have sold on lower floors, for over $100K more, it doesnt look so bad. To put it into perspective, that was the least expensive purchase in either of the Harbor Club towers since 2003.

Click here to see all the currently available homes for sale at The Harbor Club.

And going back to the beginning, yes, there are more foreclosures now than there have been. They can be good deals, but just make sure youre buying a good product at a good price “ a bad product at any price, might not be worth it.

My point is, while prices have gone down over the years, prices are more or less steady now. If youre thinking about buying, why dont you let me work for you and try and get you a great deal? It costs you nothing and I guarantee Downtown is a great investmenthow has the stock market been treating you lately?

Other Related Reads:

Great Condo Deals in Downtown San Diego
Has San Diegos Real Estate Market Hit the Bottom?
6 Reasons Why Downtown San Diego Isnt Over Built

Click here to search foreclosures, short sales and auctions.

  1. Brad

    With the figures released today showing June year over year price declines of 25%, I’d say yes – for many folks the sky is falling.

  2. Denny Oh

    Hey Brad,

    Thanks for the input. I didn’t see the numbers you’re talking about, but I have seen the market become much more active in the last few months.

    Downtown, the average sales price for June of ’08 was only 3.4% below June of ’07. In addition to that, June of this year saw almost 14% more sales.

    Yes, prices have come down, but buyers are out and deals are being made.

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