I hope everybody had a nice Thanksgiving break. I went back to the Bay Area to spend some time with family and my 1 year old niece. I saw lots of friends and family who were all hesitant to ask me how work was going. With all the national headlines about the housing crisis, mortgage meltdown, recession news, government bailout programs, job layoffs, etc. you can understand why somebody would not expect any positive feedback from a person working in one of those industries- especially real estate. Most were pretty shocked to hear that this is the busiest I have ever been in my career! I know I am very fortunate and owe lots of thanks to my clients and all those of you referring me business. I am grateful that during these tough economic times I have managed to keep busy. So despite all the negative news lately, why are people still buying homes in San Diego?

There are two main factors driving the market right now:

1) Housing Prices: As you can see from the chart above, single family detached homes in San Diego County are almost 2/3 the price they were exactly one year ago. But it gets even better...from the highs of the market in 2005 we are almost selling at 45% below sales prices for that year. Keep in mind these numbers reflect the county as a whole and areas along the coast were not as hard hit as inland (especially newer) communities. Economic experts talk about cycles in the housing market...highs and lows. Many of them believe we will look back at 2008-2009 as a low point in the housing cycle.

2) Interest Rates: With the flood of government monies (your tax dollars) bailing out the banks, lenders, mortgage insurers, etc., rates have dropped significantly in the past couple weeks. They are now down to the lows of 2008. Obtaining a loan approval is more difficult than before as lenders have tighter guidelines for income, credit, downpayment and debt ratios but I have some great lenders, which I trust and work with regularly, who would be glad to help you out.

As I look into my crystal ball, I can't tell you when the bottom of the market will be. We won't know we hit it until we are already past that point. I do feel we are close. For me, there isn't a good or bad time to buy...there are only good deals and bad deals.