Prices Continue Rising on Falling Sales

The median price for single-family, resale homes in San Diego County rose 0.9% in April from March, and were up 1.7% year-over-year.

These numbers are suspect as the market has split due to the tightening of loan requirements, which has dampened the entry-level and move-up markets. These numbers are higher than reality because the $1,000,000+ market, which is not affected by loan tightening, is a larger percentage of sales than normal.

This can be seen in the average price, which is up 2.9% year-over-year. A higher percentage of $1,000,000+ sales drives the average price up faster than the median price.



Home sales fell in April, reflecting the fall-off in demand at the entry and move-up levels, dropping 2.6% from March, off 15% compared to April 2006.

The median price for condos fell 2.7%, down 3.9% compared to last April. Condo sales rose 3.3% month-over-month, but were off 3.6% compared to last April.

The sales price to list price for single-family homes rose 0.2 of a point to 95.5%. The ratio for condos fell 0.3 of a point to 96.1%.

Days on market for homes fell one to 71 days. Days on market for condos dropped five to 68.

My advice? For buyers, with loan requirements being tightened, it is crucial that you be pre-approved and have a loan in place, especially if you are a first-time home buyer or move-up buyer.

For sellers, if your home is in the entry-level or move-up market, you will need a comprehensive & accurate Comparative Market Analysis (CMA) to determine your asking price and probable sales price. Call. If you're in the $1,000,000+ market, don't worry, be happy.

The real estate market is very hard to generalize. It is a market made up of many micro markets. For complete information on a particular neighborhood or for an evaluation of your home's worth, give me a call.