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How much is real estate in San Diego going for these days?

Well, recently I attended a foreclosure auction at the San Diego Convention Center that was put on by REDC.  Curiosity led me to help out a real estate investor who needed a list of sales prices at the auction, so I was at the convention center the whole day. 

The auction was free to attend and was held in one of the main exhibit halls.  Rows of seats were taken up by about 300 or more attendees - many of them who had made the deposit of $5,000 to place a bid on a home while people like me were there just to check out the auction. 

This foreclosure auction was like your typical auction where you have an auctioneer who talks fast and rambles off prices to build up that “I gotta have it now” energy.  There are guys in suits on the floor who walk up to you if you make a bid and let you know where the price is at - or if you look like you’re going to back off, they entice you to keep bidding. 

If you plan on attending one of these foreclosure auctions put on by REDC, here are a few tips:

• Preview the home before you go to the auction.  Most of the time there will be an open house a couple days before the auction starts.  Sure, a home could look nice on the outside, but it’s best to check out everything before you even place a bid.
• Know what your bidding limit is.  At auctions like this you can get caught up in the excitement and next thing you know you’re bidding way above what you can actually afford.
• Keep in mind that there is a 5% premium on top of the sales price.  REDC charges this 5% as their fee.
• If you have a real estate broker or agent, bring them along for support.  (Brokers will need to register here)

To answer the question I posed at the beginning of this post, my answer would be…

Real estate in San Diego is going for about 30-50% of what it was four years ago - according to the sales prices at this particular auction that I attended.  It certainly is a great time to buy! 

Find out more about REDC auctions by visiting: www.ushomeauction.com/

Here are some of the latest thoughts on San Diego real estate in the news and blogosphere that I found to be of interest…

Roberta Murphy of The Murphy Group says “Let’s Resurrect Assumable Loans“

Brian Brady of World Wide Wealth Advisors offers us the San Diego Real Estate and Housing Outlook For 2009

Mary Ann Morrar shares her thoughts on DataQuicks Numbers for San Diego vs. Local 4S Ranch

Jim Klinge of Klinge Realty offers a great list of resources for San Diego Home Auctions

Have some thoughts to share about the San Diego real estate market? Leave a comment or email admin [at] homesolutionssandiego [dot] com

Congress has passed the bill that will bailout banks and financial institutions who have contributed to this disarray in the mortgage and real estate industries.  So, how will the passing of this bill affect the San Diego real estate market? 

As Marc Von Musser states on his blog, the Emergency Economic Stabilization Act doesn’t directly help homeowners or homebuyers, but it does so indirectly as buying habits are driven by consumer confidence.  However, I’m not so sure that people will be so confident just because Congress passed this bill.  I’m not even so sure the banks will even regain trust from the American people - and if they do, it will come back very slowly. 

The question that crosses my mind over and over again is:  Where is the bailout for the people whose homes were lost in foreclosure due to predatory lending practices by these banks?  These people’s credit scores have been mutiliated, not to mention that they have to go back to renting or live with other family members in order to get back on their feet.  Also, why do taxpayers have to pay for the mistakes of Big Bank Executives?  I’m not one to really dwell on all the negative press, but I feel the need to ask these questions.

In theory, the Emergency Economic Stabilization Act (a.k.a. “$700B Bailout Plan”) sounds like it could work, but this seems like a short-term resolution.

MarketWatch has published a summary which explains what the EESA means in layman’s terms.

Photo Credit: Ricardo Carreon

Browsing through other San Diego real estate-related blogs today, I thought I’d share some interesting links and news:

Brian Brady of the Mortgage Rates Report says that there are new FHA Loan Limits in San Diego.

Kris Berger of The San Diego Home Blogthinks that perhaps affordability has been redefined in the San Diego real estate market. (BTW, I really enjoy Kris’ humor!)

The San Diego Blog reports that Sales of Super-Luxury Homes are Robust. I don’t think that most of the wealthy ever really experience “tough times”. The reason they can buy these homes is because they have a record of being good with money…

The 2008 SDAR Home Expo will take place at the San Diego Convention Center tomorrow, May 9th and Saturday, May 10.

So, the first quarter of 2008 is over and things are still relatively slow in the San Diego real estate market. I came across the San Diego Market Monitor where some 2008 predictions have been posted. Here are more predictions from a San Diego real estate broker.

My gut feeling is that interest rates are going to decrease as we head into the middle part of 2008. I don’t have any scientific analysis or data to support this hypothesis - again, it’s just a gut feeling. Perhaps all this talk about a recession will spur some rate cuts.

Here is a video of Robert T. Boyer of San Diego’s Finest Real Estate talking about the housing market, loan rates, and his own predictions for this year. Dr. Boyer says that the 5 things to look out for are:

Not going to be an easy year

More foreclosures

Aggressive pricing

Market trying to stabilize

Green light to buy a home