From 2000 to 2005 San Diego California had home appreciation of almost 100%! San Diego was one of the nation’s best cities for genuine estate appreciation. But it all changed within the summer of 2005. Since then, San Diego house values have decreased by about 30%. Also number of the city’s condo neighborhoods felt value drops with about 50% from their peaks in 2005.
When the Federal and State residence buyer credits of 8000 dollars ended, the real estate industry in this area went into a double dip continued loss of residence values.
Home values encountered a tiny value appreciation, after these credits determined. Now this little appreciation has gone as well. It’s worrying, that the last couple of months the resale home sales level has been falling at double digit rates. Just from April to May the western states sales fallen a reported 20.9%. Double-digit decrease in home sales are an enormous scare that can not be neglected.
When will the federal government learn which you cannot artificially produce lasting demand? I believe the best thing they could do would be to stay away from the house industry and allow the open market to deal with it.
There’s an expiration on the foreclosure moratoriums. I honeslty believe that the banks will try to resolve their portfolios through elevated foreclosures.
The gurus obviously have it backwards, concerning how far the real estate pen-up buyer interest goes. To unload their houses it is not a buyer pent-up demand, it’s a seller pent-up demand.
The degree and longevity of this housing value depression has been imbedded in to the consciousness of the usual 1st wave of residence buyers in their late 20′s and early 30′s.