Mortgage and Housing Opportunity in San Diego
By Richard BarringtonLocal Lender Columnist
Jun 11, 2008
It is well known that San Diego has been among the areas of the country hardest hit by the mortgage and housing crisis. What fewer people seem to emphasize is how welcome this news should be for buyers.
In years past, when San Diego housing skyrocketed, many potential buyers naturally felt shut out. As prices roll back, buyers should consider this a second chance, especially with lower mortgage rates creating an added incentive.
Prices and Bargaining Power Favor Buyers
Recently-released figures indicate that the median home price for the San Diego area was 17.1% lower in January of 2008 than it had been a year earlier. At a time when so many prices seem to be rising, cheaper housing should be welcome news for buyers.In truth, savvy buyers may find they can get more for their money than just that 17.1% reduction in prices. Along with falling prices, home sales volume in San Diego is also down -- 20.4% for the year ending January 2008. Falling volume can be an indication that buyers are scarce, and when buyers are scarce, expect sellers to be willing to make extra concessions to close a deal. In other words, buyers should have the upper hand in most negotiations these days.
Mortgage Rates Still Low
Along with cheaper prices and stronger bargaining power, buyers should also feel they have mortgage rates on their side. Mortgage rates have fallen considerably since last summer and are relatively low by historical standards. Mortgage rates have a significant effect on monthly payments, allowing buyers to fit more house into their budgets.For anyone who felt shut out of the San Diego housing market in years past, this may be an opportune time to take a fresh look at it.
Sources: About the Author
Richard Barrington is a freelance writer and novelist who previously spent over twenty years as an investment industry executive.