SD Median Price Down

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Submitted by PerryChase on June 13, 2006 - 5:44pm

I suspect that everyone already read the SD Union article on the median price going down for May. So much for a spring rally in housing.

I think a few more months of data will confirm our down market.

Here's the link:
http://www.signonsandiego.com/news/busin...

Submitted by davelj on June 13, 2006 - 6:07pm.

What was the all-time high for San Diego County's median sales price?

I see different stats all the time, one for new/builder homes, one for condos, one for previously occupied homes, etc. But I never seem to find the all-time high median for the simple, straightforward single-family residence. Not that it's extraordinarily relevant in the real world, but it is the headline after all.

Submitted by sunsetbeachguy2 on June 13, 2006 - 6:42pm.

The big news is Leslie Appleton-Young can no longer with a straight face talk about a soft landing in SD.

 That is the news, SD isn't in for a soft landing per CAR.

Submitted by PD on June 13, 2006 - 7:10pm.

I liked the fact that she is looking for the right words to describe housing. She must be unable to think of anything that sounds happy enough.

Submitted by lostkitty on June 13, 2006 - 7:18pm.

Maybe she should ask Suzanne.

Submitted by PD on June 13, 2006 - 7:31pm.

Did I get my people mixed up? :)

Submitted by lostkitty on June 13, 2006 - 8:06pm.

Just a joke referring to the recent RE ad on tv... Didnt you see it?

Submitted by PD on June 13, 2006 - 8:14pm.

Nope. I thought maybe I was skimming too fast and got my threads mixed up. What did the ad say?

Submitted by kiki on June 13, 2006 - 9:43pm.

baased on this site, Nov05 was highest median price: $598K.
What is strange is this site shows May were up ($595K)

http://rereport.com/sdccsd/

Submitted by JES on June 13, 2006 - 9:48pm.

That is too funny!

'Soft landing'is out the door and she cannot even think of another phrase to use. Is that because she is too proud to call it like it is, or because the situation is so perilous right now that words simply cannot convey the multitude of factors aligning to sink the housing market right now?

Submitted by lostkitty on June 14, 2006 - 3:28am.

PD - Here is the video... It is an on-going jooke on real estate blogs.. this ad is so ridiculous...

http://www.youtube.com/watch?v=Ubsd-tWYm...

Submitted by sdrealtor on June 14, 2006 - 8:33am.

Every time Leslie AY has made a public statement the genereal response in my office over the last few years has been....WHAT PLANET IS SHE FROM?

Submitted by bmarum on June 14, 2006 - 9:40am.

Interesting that the drop was caused by a decline in the price of new homes while resale prices increased. I wonder what, if anything, that means.

Submitted by PD on June 14, 2006 - 10:18am.

I thought that was interesting too.

Submitted by Carlsbadliving on June 14, 2006 - 10:18am.

It means that the builders know what's coming and are slashing prices to get out as fast as possible. They can't sit on inventory like the resale market. Resales are sticking tough on their prices and finding enough fools to buy to keep the resale median afloat.

Submitted by Bugs on June 14, 2006 - 11:34am.

I think it's not just the stabilization or reduction in pricing of the new homes that's affecting the averages, it's the reduction in the volume of sales, too. New homes have made up a disproportionate share of the total volume when compared to prior years. Their prices were so much more overextended that reductions in that market would definitely impact the local medians.

I just looked at some more sales data in San Elijo (same project as Tara Rd) yesterday and they're struggling to break even with some of their yr2004 sale prices. A couple of those listings would represent a net loss from the seller's pocket if they can sell at the bottom of their listings. And that's not counting the differential between their PITI+MR and the rents they would otherwise have paid during their holding periods. It's not looking too good over there right now. I surely wouldn't want to be in the developers' shoes right now - those guys must be ordering their Maalox by the quart.

Submitted by Bugs on June 14, 2006 - 12:14pm.

I especially liked the part where Alan Gin thinks we're in a plateau and that the soft landing has already occurred.

Submitted by PD on June 15, 2006 - 9:24pm.

What was the cost of a house times earnings at the high of the last peak and what was the cost of a house times earnings at the last low? Anybody know?

Submitted by ocrenter on June 15, 2006 - 11:59pm.

bugs, there's a few builders in San Elijo hills just starting phase 1 of 17 (total of 170 homes), lots of fun for those guys in the coming months!

Submitted by Bugs on June 16, 2006 - 12:30am.

I find it shocking how many units are in process right now. I guess these builders are too far into the process on these subdivisions to not build them out.

Submitted by an on June 16, 2006 - 12:34am.

I would think that as long as they're making profit per house, if profit margin gets lower, they would have to build more than before to make up the difference. They're publicly traded companies, so bottom line is earning. So one way or another, they'll try their best to hit those earning, even if they have to lower the price and build more to hit it.

Submitted by ocrenter on June 16, 2006 - 7:28am.

you're right, one reason new homes saw a far sharper drop in price recently compared to resales.

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