August 2007

State of the Local Real Estate Market
Here is the headline missing from today’s media: 97% of all residential real estate loans were current in payments as of the 2nd quarter. Commercial banks are profitable. That is the real story, folks. Sub prime loans are offered to consumers with poor or spotty credit histories. Consumers who have recently defaulted on their home loans have spurred delinquencies to the highest numbers in 5 years. Yet, the delinquencies represent 3% of all residential real estate loans in the United States. Six California metropolitan area’s have the nations top 10 foreclosure rates: Stockton #2, Merced #3, Modesto #4, Vallejo-Fairfield #5, Riverside-San Bernardino #8, and Sacramento #9.

Interest rates on 30-year mortgages averaged 6.52% as of August 24. This rate is the lowest since May. Mortgage rates eased following the Federal Reserve’s action to cut the lending rate to banks. Consumer credit for car loans, home improvement loans and credit cards are still very much available at the same lending standards as before the sub-prime mortgage trouble. It is clearly more difficult to obtain a mortgage today, so keep your credit scores high and your credit reports clean.

The top 5 least affordable small cities in the US (population under 500,000) as of the 2nd quarter are in California. Salinas has a 3.7% share of homeowners earning the median of $63,400; Merced has a 3.9% share; Santa Barbara-Santa Maria-Goleta has a 6.2% share, San Luis Obispo-Paso Robles has a 6.4% share and Napa has a 6.4%. These numbers do not take into account the move-up buyer who has built equity into their current property.

Please feel free to contact me anytime for all your real estate questions, needs and referrals

Average Sale Price by Zip Code (San Diego Association of REALTORS).
(If there is a neighborhood or zip code you would like to see tracked just let me know. Call me at 619-248-4200 or email me at kenbaer@willisallen.com)

Neighborhood	Zip Code	July 2007	July 2006	July 2005
Downtown	92101	$618,919	$645,132	$687,820
Golden Hill	92102	$436,977	$551,875	$466,636
Mission Hills	92103	$971,791	$663,414	$1,165,787
North Park	92104	$574,988	$532,970	$655,551
Point Loma	92106	$950,571	$1,147,062	$1,141,094
Ocean Beach	92107	$1,016,666	$783,409	$1,226,000
Mission Valley	92108	$357,138	$411,850	$365,647
Pacific Beach	92109	$981,835	$976,894	$949,171
Linda Vista	92111	$512,569	$513,976	$546,083
College	92115	$497,800	$583,476	$528,602
Kensington	92116	$669,953	$695,500	$589,705
Clairemont	92117	$564,383	$575,114	$585,601
Coronado	92118	$1,743,000	$1,694,583	$1,828,423
Del Cerro	92120	$610,236	$680,557	$620,571
University City	92122	$721,633	$728,571	$817,650
Mira Mesa	92126	$493,681	$530,596	$533,864
Santaluz	92127	$1,176,676	$1,224,291	$1,032,908
Rancho Penasquitos	92129	$706,103	$681,147	$703,125
Carmel Valley	92130	$1,079,237	$1,515,768	$1,646,378
Scripps Ranch	92131	$723,431	$835,163	$820,449
Chula Vista	91910	$522,975	$613,489	$640,594
Imperial Beach	91932	$491,666	$508,771	$540,750
La Mesa	91941	$601,357	$588,862	$641,266
Spring Valley	91978	$434,166	$555,000	$642,800
Cardiff	92007	$1,062,500	$1,190,500	$1,218,125
Carlsbad	92008	$835,866	$574,444	$888,568
Del Mar	92014	$2,747,807	$1,403,461	$1,341,844
El Cajon	92020	$490,369	$590,200	$608,354
Encinitas	92024	$1,304,526	$1,045,088	$1,137,820
Escondido	92026	$519,706	$539,156	$585,280
La Jolla	92037	$2,329,453	$2,371,794	$2,651,089
Oceanside	92054	$663,010	$553,972	$672,902
Poway	92064	$838,173	$964,074	$874,793
Rancho Santa Fe	92067	$3,960,050	$4,748,633	$3,005,400
Santee	92071	$459,905	$471,613	$478,312
Solana Beach	92075	$1,296,363	$1,765,625	$1,320,714
Vista	92084	$529,142	$580,307	$617,233