Over the last couple of years there have been many homes and condos go into foreclosure. San Diego is no different than the rest of the nation in this matter. With housing prices declining and mortgages being higher than the property values, many homeowners have been forced to foreclose on their homes. Along with declining values the recovery has been slow which has also prompted owners to let their properties go into foreclosure. Recent reports reveal that one third of home sales have been foreclosures and this trend may continue for another couple of years. The housing market has improved but it is still shaky.
During the peak years the median price for a home in San Diego was over $517,000 but by the end of 2008 the median price dropped to $280,000. As a result mortgages have been more than the property values and therefore many homes have been foreclosed on. Although recent reports suggest a recovery is beginning, there are still ways to go and a full recovery is probably a good 2-5 years away.
Despite the bleak news there are some positives from this recent real estate crash. With property values lower than usual, many investors and first time home buyers have had a golden opportunity to acquire properties. This opportunity has enabled investors to buy houses and rent them out to receive income or do fix and flip deals. For those looking to buy property for the first time there has been great opportunity. Since home values have declined homes are now more affordable than ever and those who couldn't afford a home a few years ago can now finally afford one.
This recent real estate crash has both positive and negative outcomes. For former homeowners, they have had the unfortunate experience of losing their home and good credit. The housing crash has also led to many banks and financial institutions lose money and therefore cause a crash in the overall economy. However housing prices have increased and home sales have increased in recent months indicating a recovery and therefore a revival of the economy. The current crash has also allowed many people seeking to buy property get property and become prosperous. Recent reports suggest that the real estate market is improving and providing new opportunities for people but the market is still several years away from matching the previous peak. In conclusion there have been more positives then negatives with the real estate market in recent months.
