Home Prices Decline 22% In San Diego
Home Prices Decline Beyond Expectation including major California Cities
The latest S&P/Case-Shiller index reports huge decline of 19.1% for the first quarter of 2009 home prices. Foreclosures and short sales have caused real estate prices to decline in all major real estate markets. This has all lead to 20% decrease in home prices and for most homeowners who are distressed and upside down in their mortgage are trying to make the more difficult choice should I try and modify my mortgage thru a loan modification San Diego program, or sell my home thru a short sale or as a last result loose my home to a foreclosure.
The following was the real estate home value decreases for the first quarter of 2009:
S&P/Case-Shiller 20-city home price index, a National real estate barometer recorded the following.
Metro area 1-year change (%)
Phoenix -36.0%
Las Vegas -31.2%
San Francisco -30.1%
Miami -28.7%
Detroit -25.7%
Minneapolis -23.3%
Tampa -22.4%
Los Angeles -22.3%
San Diego -22.0%
Chicago -18.6%
Washington -18.4%
Seattle -16.4%
Atlanta -15.7%
Portland -15.3%
New York -11.8%
Charlotte -9.3%
Cleveland -9.0%
Boston -8.0%
Dallas -5.6%
Denver -5.5%
Composite-20 -18.7%
Source:S&P/Case-Shiller
This index dropped 18.7% year-over-year and it fell 18.5% during the last three months of 2008. The index has fallen 32 staright months in a row.
The big problem now is that Apprasiers have ignored foreclosures in the past when evaluating home prices. However, when markets with foreclosures out number non foreclosed properties, now the foreclosures have to be used in the market comparable pricing models which lead to more homeowners in need of a lower rate to lower their monthly payment are unable to qualify based on new property valuations which will lead more homeowners to seek a loan modification San Diego program on their home loan.
Cities with the largest year over year declines were Phoenix down 36%, Las Vegas 31.2% and San Francisco down 30.1%. Phoenix is down 50%, and Las Vegas is down 50% from their August 2006 highs. It was reported from Economist Mark Zandi, the founder of Moody’s Economy.com, he is optimistic that the market will stop falling sometime this summer or fall. “We need to focus on the mortgage modification program,” he said. “If that plan doesn’t work or only works as well as the other modification programs have, we’ve got a problem.”
Source: reported in Money.cnn May 26, 2009
On a further note: Existing Home Sales were reported at 4.68 Million which was actually
higher than industry expectations of 4.65 Million. The unsold inventory of homes rose to a
10.2 month level from April’s reading of 9.6, below the 11
month reading of November 2008. There still is a large supply of
homes above $750,000, which now stands at a 40-month supply. The government has done very little in providing availability of jumbo loans to help these home owners with refinancing programs.
If you are having trouble refinancing and you are considering a loan modification San Diego program on your home mortgage, it would be advisable to start the process now rather than later. The loan modification process can take on an average of 90 days to complete the process.