San Diego foreclosure investing is viable with the rebound of home prices, as reported by a research firm.
In February, home prices in San Diego County bounced back and pushed the median sales price to $322,000, an increase of 5.6 percent from February 2009. The increase was in contrast to the 7.5-percent decrease experienced in January, when the median sales price was much lower than the December 2009 median of $330,000.
The median prices from the months of December to February showed that most buyers were first timers who looked for lower-cost homes and that there was no significant sales activity for move-up buyers.
The February median price marked the highest price increase year-over-year since the middle of 2005 when the median sales price reached its highest level at $517,500. The lowest price experienced by the San Diego housing market during the downturn was $280,000, the median in January 2009.
Analysts, however, warned that the price levels for the months of January and February cannot be used as basis for predicting the price trend for the year and for analyzing San Diego foreclosure investing activity because of the traditionally lower volume of sales activity during the first months of the year.
Pre-foreclosures in San Diego in February surged month-over-month, but the number of properties that entered San Diego foreclosure listings remained flat compared to January, based on figures from the Assessor’s Office of San Diego County.
More than 2,300 households were notified of mortgage delinquency, an increase of 26 percent from the previous month, but a decrease of 37 percent from February last year. The number was the highest total of delinquency notices since October last year and marked the first occurrence of increase since November last year.
Meanwhile, the median sales price for existing single-family homes rose to $358,500 in February, an increase of 3.9 percent month-over-month and stayed about the same compared to the December 2009 median. It was also 12-percent higher than the February 2009 median.
The price median for pre-owned condos was $219,500, an increase of 8.9 percent month-over-month and 12.6-percent higher than the February 2009 median of $195,000. The median for new homes was $460,000, a jump of 13.3 percent from the January median of $406,000 and an increase of 1.8 percent from the February 2009 median.
With total home sales rising by more than 6 percent in February to 2,465 units, San Diego foreclosure investing is viable as prospects for resale are stronger.
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