Category Archives: Real Estate

Underwater housing increasing

At the end of the first quarter of 2019, more than 5.2 million (5,223,524) U.S. properties were seriously underwater (where the combined balance of loans secured by the property was at least 25 percent higher than the property’s estimated market value), up by more than 17,000 properties from a year ago.

The 5.2 million seriously underwater properties at the end of Q1 2019 represented 9.1 percent of all U.S. properties with a mortgage, up from 8.8 percent in the previous quarter but down from 9.5 percent in Q1 2018.

“With home prices increasing at a slower pace in 2018, than in previous years, the potential for people to climb out from mortgages that are underwater or advance into equity-rich territory, tends to be reduced,” said Todd Teta, chief product officer at ATTOM Data Solutions. “However, only one in 11 mortgages are seriously underwater today, compared to nearly one in three during the depths of the recession. Although, if the latest trend continues, it will raise another clear signal of a market slowdown, which will be good for buyers, but not so good for sellers. But if the pattern of the past few years takes hold – with levels of underwater and equity rich mortgages turning around – it will mean the market remains strong for sellers, with fewer needing to get out from under financial distress.”

read more at: https://www.attomdata.com/news/market-trends/q1-2019-home-equity-underwater-report/

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New Home Building in San Diego Plummets

There were 1,180 residential permits pulled in the first quarter, a drop of 58 percent compared to the same time last year, said the Real Estate Research Council of Southern California. It was the most significant drop of the seven Southern California counties.

The drop was largely the result of a reduction in the seemingly unstoppable apartment market. There were 556 multifamily permits pulled in the first quarter, a drop of 70 percent from 2018. While the apartment and condo market fluctuates heavily, because one approved project can mean hundreds of units, it was still notable because the apartment building pace had also slowed significantly at the end of last year.

read more at: https://www.msn.com/en-us/finance/realestate/homebuilding-tanks-in-san-diego-county/ar-AACPxKW

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San Diego Median Home Price Back at $570k

San Diego County home sales were down for the 12th month in a row in April, said real estate tracker CoreLogic on Wednesday.

The median home price was up from previous months to $570,000, the same price it was in April 2018. In the past 12 months, the median hit a peak of $584,750 in August and a low of $532,000 in January.

There were 3,593 home sales in April, down 3.4 percent from the same time last year. Still, that’s up from the past 11 months, which have seen an average drop of 12 percent. As with Southern California as a whole, April could be a sign the housing market is gaining steam again.

CoreLogic analyst Andrew LePage wrote that a smaller decrease in sales across the region could mean that declining interest rates, and more homes on the market, motivated buyers.

“This might include people who backed out of a tighter, more frenzied market last year,” he wrote, “when rising prices and mortgage rates priced out some and made others worry about buying near a peak.”

San Diego’s market was led by resale single-family home sales, which were up 2.8 percent year-over-year and was the only type of home to see a bump. The resale median reached $630,000 — back to an all-time high reached in June and July last year.

Resale condo sales were down 3.6 percent, with a median of $420,000, down from a peak of $430,000 reached in June and July.

read more at: https://www.sandiegouniontribune.com/business/real-estate/story/2019-05-29/san-diego-median-home-price-back-at-570k

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