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Real estate industry

Housing Market Shows Signs of Stabilization, Analysts Say

Strategic Insights

— 2 min read

The rate of decline in home prices slowed significantly in February, a sign the housing market might be stabilizing, analysts said Tuesday. While home prices were still falling, they didn't tumble at their recent pace in February, according to a report released by Standard & Poor's Case-Shiller Home Price Index. The report also showed a growing pile of foreclosures, which could keep downward pressure on prices for months to come. The main reason for the sales boom in North County has been a drop in prices that attracted investors and first-time homebuyers. As a result, real estate agents say prices appear to no longer be falling in certain neighborhoods, with multiple buyers starting bidding wars.

Key Takeaways:

  • Home prices have slowed their decline in February, with a 1 percent drop, compared to a 2 percent or more decline in previous months.
  • The average monthly home sales in North County have increased by 58 percent from a year earlier, from September through March.
  • The main reason for the sales boom has been a drop in prices that attracted investors and first-time homebuyers.
  • Real estate agents report that prices appear to no longer be falling in certain neighborhoods, with multiple buyers starting bidding wars.
  • The number of people willing to pay above asking price is staggering, according to Kurt Kinsey, a real estate agent in Oceanside.
  • Since a November 2005 peak, prices have tumbled 41 percent.
  • San Diego County home prices were down 22.9 percent from a year ago, a smaller drop from the 25 percent annual decline in December and January.
  • The number of default notices, the first step in the foreclosure process, spiked to a new high for this recession in March, according to data firm ForeclosureRadar.
  • The number of finalized foreclosures dipped to a low point for the year.

Statistics:

  • Home prices have slowed their decline in February by 1 percent, compared to a 2 percent or more decline in previous months.
  • Average monthly home sales in North County have increased by 58 percent from a year earlier, from September through March.
  • Since a November 2005 peak, prices have tumbled 41 percent.
  • San Diego County home prices were down 22.9 percent from a year ago.
  • The number of default notices, the first step in the foreclosure process, spiked to a new high for this recession in March, with 22,398 notices.
  • The number of finalized foreclosures dipped to a low point for the year, with 1,323 finalized in March.
  • The low end of the market (less than $281,207) fell 1.8 percent in February, while the high end (more than $412,740) ticked down 0.1 percent.

Sources:

  • Standard & Poor's Case-Shiller Home Price Index
  • ForeclosureRadar
  • North County Times, "Housing Market Shows Signs of Stabilization, Analysts Say" by Zach Fox
  • McClatchy-Tribune Information Services

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