On the real estate front in San Diego sales improved over 2008 due to low interest rates and prices as well as the homebuyer tax credit. Keep in mind that in order to take advantage of the tax credit this year a home purchase must be under contract by April 30, 2010 and closed by June 30, 2010. 11,730 attached homes changed hands during the year compared to 10,006 in 2008, an improvement of about 17%. 22,156 detached homes transacted in 2009 compared to 19,100 in 2008, an improvement of about 16%.
Prices in the lower levels have been increasing and it is my belief that the majority of the foreclosure activity has been completed for these homes. Prices in the middle and upper ranges continue to be softer but are improving, especially in the better areas. Jumbo loans are getting somewhat better and that will increase the move-up activity as they become even more attractive. It is felt by many that we could see larger numbers of short sales in higher price levels due to the number of option ARM loans resetting over the next few years.
Prices in the lower levels have been increasing and it is my belief that the majority of the foreclosure activity has been completed for these homes. Prices in the middle and upper ranges continue to be softer but are improving, especially in the better areas. Jumbo loans are getting somewhat better and that will increase the move-up activity as they become even more attractive. It is felt by many that we could see larger numbers of short sales in higher price levels due to the number of option ARM loans resetting over the next few years.
It is still my feeling that people who purchase over the next year or so will be very happy when they look back on things a few years later.