County home prices at highest since August 2008

By Roger Showley, UNION-TRIBUNE STAFF WRITER
Monday, June 14, 2010 at 11:30 a.m.

San Diego County Home Prices May 2010

San Diego County home prices rose to a median $340,000 in May, the highest since August 2008, as the proportion of foreclosure sales dropped below the 30 percent level for the first time in 2½ years, MDA DataQuick reported Monday.

The year-over-year price change was 15.3 percent, the fourth straight month of such an increase, suggesting that the market is broadening to include more higher-priced sales rather than being concentrated at the low end as it has been for three years. The increase from April’s $325,250 was 4.5 percent, the second highest month-to-month change in nearly a year.

The new median is comparable to what was reported in the summer of 2008 when prices were falling and the fall of 2002 when prices were rising. It is 34.3 percent below the record peak of $517,500, set in November 2005, and 21.4 percent above the low of $280,000 in January 2009.

Sales were up 17.8 percent from April to 3,879 transactions. But analysts believe the sales counts were skewed by many buyers’ decision to delay close of escrow to take advantage of state homebuyer tax credits, which became effective May 1.

Of particular interest is the proportion of foreclosures in the overall sales activity. The May count was 29.5 percent, down from 32.2 percent in April and 43.1 percent in May 2009. It was lowest since 22.2 percent in November 2007 and also the first time since then that the proportion has dropped below the 30 percent level.

Some real estate agents have reported that banks have been shifting emphasis to short-sales — allowing owners to sell their homes for less than the outstanding mortgage balance — which can be a less costly and speedier process than going through foreclosure.

Of the three housing types DataQuick tracks, resale single-family home prices were up 2.5 percent to $377,000 from April and 16 percent from May 2009. Resale condos also rose to $235,000, up 6.8 percent from April and 18.1 percent from May. The always volatile new-home category was down 3.1 percent to $399,000 from April and down 16.2 percent from May 2009, perhaps reflecting that smaller homes are now selling.

Roger Showley: (619) 293-1286; roger.showley@uniontrib.com

http://www.signonsandiego.com/news/2010 ... gust-2008/