bubbleinfo.com

from sddt.com

With median prices for detached homes down more than 35 percent in San Diego County year-over-year in November, areas like Rancho Bernardo, Scripps Ranch and Tierrasanta have mostly endured moderate declines while seeing fewer sales in the process.

Areas with median prices above $500,000 but less than $1 million have seen prices fall an average of 11.7 percent year over year. However, they have seen 16.4 percent fewer sales compared to 2007.

Some real estate agents said the prices have remained relatively stable in those communities considering the county had only six ZIP codes where there was an increase in detached median home prices. The prices have not fallen as sharply as some other areas because “typical” buyers in that sector of the market have not changed.

While year-over-year sales have increased by as much as 156 percent in markets where prices have fallen by a third or more, sales in upper-middle-class neighborhoods like Tierrasanta and Scripps Ranch have seen slight sales declines coupled with their modest median price drops.

Saeid Mojabi, a Coldwell Banker real estate agent of more than 25 years, said Tierrasanta saw one of its worst years in sales. While he added Tierrasanta’s median detached home price decline was “not as much” as areas like Chula Vista and Oceanside, he said there are still homes in distress.

“There is major activity in foreclosures and short sales,” he said.  Mojabi currently has a short sale listing for a Tierrasanta home priced at $590,000 that he served as the buyer’s agent when it was purchased in 2006 for $720,000. 

However, some agents said they have not witnessed the drop in prices and sales for mid-range homes as much as Mojabi.  Maria Peña-Morales, president of the Team Q group of ReMax Ranch and Beach, said her team has seen sales increase in the $500,000 to $600,000 range calling that housing class the “bread and butter” of her business.

Peña-Morales conducts business primarily in areas encompassed by the Poway Unified School District, which boasts some of the highest test scores in the county. She said good schools always draw people looking for a place to raise their children.

Scripps Ranch’s median detached home price is just over $700,000; more than double the countywide median.

However, Sue Herndon, a Prudential California Realtor, said there are still people who want and can afford homes in the upper-middle range of the market.  “I think we have people who can afford them,” said Herndon. “I think that that’s still an affordable (price range), I think what’s going to be more difficult are what you would consider you’re high, high priced homes.”  Herndon added homes in the $2 million to $8 million range would be difficult to sell given the current economic climate, but said there is still a thriving market for homes under $1 million.

Buyer demographics in terms of age, martial status and income haven’t changed much, but what has changed is that buyers are more qualified.  “We’re going back to what our parents taught us,” said Peña-Morales. “Save up your money, put 20 percent down and have good credit.”  Peña-Morales also said she has seen more international buyers looking for second homes who perceive value in the current market. She said they are looking for homes to own for the long term rather than investment properties.

“The climate of this economy is not for people to flip properties,” she said.

Posted on Tuesday, January 6th, 2009 at 6:45 PM in Uncategorized | |  Email |  Print You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.