What are your predictions for the real estate market in the San Diego, California, Area?

In today's email I received the question above. Before I answer, let me say that the only thing I can assure my clients is getting them the best possible price, whether buying or selling, for the current market conditions! I'm NOT paid for my opinion on the market or its direction.

With that said, I'm certainly not afraid to express my opinion developed over three decades of residential real estate sales in New York, New Jersey and California.  

The reality is, the San Diego California real estate market saw its high point in the summer of 2005.

Since then, home values have been in decline! This is fact and NOT opinion! At this point, many San Diego neighborhoods have had double digit value declines!

From the local San Diego Union-Tribune newspaper dated 3-18-2007, here are a few selected median home value drops just since February 2006 for resale homes:

Coronado 50%, La Jolla 15.6%, Pacific Beach 15.8%, North Park 15.8%, Ocean Beach  19.1%,San Carlos 19.1%

Keep in mind, the average San Diego median home price is over $550,000. So, a 15% decline is a $82,500 loss! If you purchased last year, even with 20% down payment, your San Diego home could now be worth MUCH LESS than the amount of your mortgage!

With my take on the background of the current San Diego real estate market expressed, my opinion on the immediate future is that we are now in a seasonal sales pick-up. In a few months, I believe that the downward trend will re-establish itself and not only  only continue, but is likely to accelerate as the popular adjustable rate mortgages from the last few years come up for their first adjustment.

Yes, San Diego housing values could easily be down 25 to 30% from their summer 2005 values by the end of 2007.[tags]San Diego real estate,San Diego housing,San Diego home values[/tags] San Diego real estate market
downtown San Diego condos