It may take several years from now before we see double-digit appreciation but we are starting to see an upward trend in median home price.
In fact, from year to year July 2009 -2010, the median home price went up by 7% for San Marcos detached homes & up by 5% for San Marcos Condos. All though new construction like Venzano & the Laurels @ Old Creek are a different animal.
How can that be??? Well consider this is following over 2 years of declines where some areas of North County San Diego depreciated over 50%.
It’s no wonder that we’re finally seeing some healthy trends after the last 30 months of this recession.
That’s not to say we don’t have more declines coming…
Reports show that in January 2010, the amount of distressed homes in North County totaled more than 11,000 which included inventory of bank owned, auctioned & pre-foreclosed homes. As of July 2010, the number of distressed homes in North County fell to 9,000, according to the HomeDex report by Economist Robert Brown.
That’s an 18% decline in distressed inventory on the market.
We still face the mortgage resets that are coming down the pipeline. Expect to see distressed homes all the way through 3rd Quarter 2012.
The amount of inventory we see will be determined by several things.
The most important thing being, How many homeowners get help? Whether its through a short sale or a loan modification, those 2 options offered by our government will affect how quickly we’ll see the light at the end of the tunnel.
But for some, those who are willing to take risks, jumping in during the times of uncertanty is what will allow them to ride the next wave of equity.