Ouch … Sellers of San Diego homes sold between June 22nd and August 22nd 2008 (a total of 4,318 sales) lost an average of $161,000 or 35.5% compared to the sales price of previous years. 75% of losses were suffered by those who had purchased their home during the last of the boom in 2005 and 2006. Remarkably in some zip codes foreclosures represented almost 90% of sales. In 2007 the percentage loss for San Diego County was 15.5%.

In some areas of San Diego County short sales are a big percentage of homes offered for sale so it was the Bank or Lender that took the loss, unfortunately data is not available for figures to be presented to you. San Diego foreclosed homes suffered losses of 39% compared to a 27% loss for nonforeclosures. This might indicate that Lenders may be more willing to negotiate short sales in the future.

It’s worth noting that some sellers managed to sell for more than they paid – a total of 1,694. Further the losses were worst in certain areas such as South Bay and North County. The Coastal communities saw relatively low rates of loss (see chart below)

What does this mean for the current San Diego real estate market? If you are considering buying a home the stats show that home prices have dropped dramatically and there are now more affordable homes available for for those home buyers with good credit who qualify under the current stricter Lender guidelines. If you would like to find out how much you might qualify for please ask us and we can go over the options available to you including FHA.

For those that need to sell we should see Lenders become more amenable to owners who are under water. If you are thinking of selling and you might have to sell short please check out our resource page here.

Here is a link to a chart with losses shown by zip code and a detailed map of the County.

All figures from MDA DataQuick, a San Diego real estate research firm.
Charts and zip code data from The San Diego Union Tribune Monday Sept 14th 2008

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